The demand for autos is likely to be
A)less price elastic than the demand for Honda Accords.
B)more price elastic than the demand for Honda Accords.
C)of the same price elasticity as the demand for Honda Accords.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for a broad category like autos is less price elastic than the demand for a specific brand or model like Honda Accords because there are fewer substitutes for the entire category of autos compared to a specific model.

The Demand for Autos Is Likely to Be