Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages, coffee and Peet's Coffee.
A)hot beverages, coffee, Peet's Coffee
B)Peet's Coffee, coffee, hot beverages
C)coffee, Peet's Coffee, hot beverages
D)coffee, hot beverages, Peet's Coffee

Question

Quizplus · Accepted Answer

Peet's Coffee is the most elastic because it is a specific brand with many substitutes. Coffee is less elastic as it is a broader category, and hot beverages are the least elastic as they encompass a wide range of drinks.

Rank These Three Items in Terms of the Elasticity of the Demand