Salima is a devoted Coca-Cola consumer,whereas Antonia can drink either Coca-Cola or Pepsi products.Salima's demand for Coca-Cola will be relatively more ________,while Antonia's demand will be relatively more ________.
A) elastic; inelastic
B) unrelated to price; elastic
C) perfectly elastic; elastic
D) inelastic; elastic
E) unitary elastic; inelastic

Question

Quizplus · Accepted Answer

Salima's demand for Coca-Cola is more inelastic because she is a devoted consumer, meaning she has a strong preference for Coca-Cola and is less likely to switch to another product even if the price increases. On the other hand, Antonia's demand is more elastic because she is willing to drink either Coca-Cola or Pepsi products, and therefore, a small change in price may cause her to switch to the other brand.

Salima Is a Devoted Coca-Cola Consumer,whereas Antonia Can Drink Either