Which of the following goods is likely to have the most price inelastic demand?
A)margarine
B)Tide detergent
C)cigarettes
D)Coca-Cola
E)ground beef

Question

Quizplus · Accepted Answer

Goods that have a high level of addiction or habit formation tend to have price inelastic demand. Cigarettes fall into this category, as smokers have a difficult time quitting and will continue to purchase cigarettes even with price increases.

Which of the Following Goods Is Likely to Have the Most