For which one of the following will demand be the most price inelastic?
A)milk
B)Happy Cow brand milk
C)Happy Cow brand milk in Regina
D)Happy Cow brand milk at Ralph's Grocery Store in Regina
E)All of the above will exhibit the same price elasticity of demand.

Question

Quizplus · Accepted Answer

Milk is a basic necessity and has very few close substitutes, which makes its demand inelastic. Regardless of the brand, people will continue to buy milk, especially those with young children, regardless of the price. However, the demand for certain brands of milk, such as Happy Cow, could be more elastic as consumers may be willing to switch to other brands if the price of Happy Cow milk increases. The location of the store also does not have a significant impact on the price elasticity of milk.

For Which One of the Following Will Demand Be the Most