The price elasticity of demand for Red Delicious apples,a certain type of apple,is likely
A) elastic.
B) inelastic.
C) perfectly elastic.
D) perfectly inelastic.
E) unit elastic.

Question

Quizplus · Accepted Answer

There are many close substitutes available for Red Delicious apples, such as Granny Smith apples, Honeycrisp apples, and Gala apples. As a result, if the price of Red Delicious apples were to increase, consumers could easily switch to one of these substitutes, making the demand for Red Delicious apples elastic.

The Price Elasticity of Demand for Red Delicious Apples,a Certain