Which of the following goods is most likely to have the lowest price elasticity?
A) Movie tickets
B) DVD rentals
C) Gasoline
D) Pasta

Question

Quizplus · Accepted Answer

Gasoline is a necessity for most individuals and there are limited substitutes, so the demand for it is relatively inelastic. Even if the price increases, people will still need to purchase gasoline to drive their cars, so the quantity demanded will not decrease significantly.

Which of the Following Goods Is Most Likely to Have