We would expect the own price elasticity of demand for food to be:
A)less elastic than the demand for cereal.
B)more elastic than the demand for cereal.
C)have the same elasticity as soap.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for food is generally less elastic than the demand for specific items like cereal because food is a necessity and has fewer substitutes compared to specific food items.

We Would Expect the Own Price Elasticity of Demand for Food