If the price is $2.00 in both locations,the price elasticity of demand for a candy bar at an airport is likely to be _________ the price elasticity of demand for a candy bar in a grocery store.
A)less than
B)equal to
C)greater than
D)the reciprocal of

Question

Quizplus · Accepted Answer

Fewer substitutes at the airport will cause demand to be more price inelastic than at a grocery store where there are more options.

If the Price Is $2