You are given some data for four different products - milk, eggs, beef, and orange juice. The absolute value of the price elasticity of demand for beef is 0.9. The absolute value of the price elasticity of demand for orange juice is 3.5. Which product has the most inelastic demand?
A)milk
B)eggs
C)beef
D)orange juice

Question

Quizplus · Accepted Answer

The absolute value of the price elasticity of demand for beef is 0.9, which means that a 1% increase in price will result in a 0.9% decrease in quantity demanded. This indicates that the demand for beef is relatively inelastic, meaning that consumers are less likely to change their consumption behavior in response to a change in price. Therefore, compared to the other options, beef has the most inelastic demand.

You Are Given Some Data for Four Different Products -