Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is
A) synergistic.
B) inelastic.
C) unitary.
D) elastic.
E) entropic.

Question

Quizplus · Accepted Answer

The significant increase in quantity demanded due to a small percentage decrease in price indicates that the demand for latex gloves is elastic. In elastic demand, a change in price causes a relatively larger change in quantity demanded. This is common in markets with close substitutes, as consumers can easily switch to a competing product if the price of one product increases too much.

Several Companies Produce Latex Gloves That Are Used in a Variety