The demand curve for one particular brand of cough syrup will _____ the demand curve for cough syrup as a general category.
A)be more elastic than
B)have the same elasticity as
C)be more inelastic than
D)have perfectly elastic demand when compared to

Question

Quizplus · Accepted Answer

The demand curve for one particular brand of cough syrup will be more elastic than the demand curve for cough syrup as a general category because consumers have a greater range of substitutes to choose from within the general cough syrup category, whereas they may have more brand loyalty or preference for one particular brand. Thus, a small change in price for the particular brand may result in consumers switching to a different brand or generic alternative, making the demand curve for that brand more responsive to changes in price.

The Demand Curve for One Particular Brand of Cough Syrup