Which of the following has the highest elasticity of demand?
A)Medical care
B)Telephone services
C)Bread
D)Household electricity
E)Restaurant meals

Question

Quizplus · Accepted Answer

Restaurant meals typically have the highest elasticity of demand among the options given. This is because there are many substitutes for restaurant meals (such as cooking at home, fast food, etc.), and consumers are more likely to change their consumption based on price changes compared to necessities like medical care, telephone services, bread, and household electricity, which have fewer substitutes and are more essential.

Which of the Following Has the Highest Elasticity of Demand