We would expect
A) the demand for Coca-Cola to be less price elastic than the demand for soft drinks in general.
B) the demand for Coca-Cola to be more price elastic than the demand for soft drinks in general.
C) no relationship between the price elasticity of demand for Coca-Cola and the price elasticity of demand for soft drinks in general.
D) none of the other answers to hold true.

Question

Quizplus · Accepted Answer

The demand for a specific brand like Coca-Cola is more price elastic because consumers can easily switch to other brands if the price rises, whereas the demand for the entire category of soft drinks is less elastic as there are fewer substitutes for the category as a whole.

We Would Expect