The demand for diet soft drinks (as a group) is relatively inelastic because
A) there are many of them on the market.
B) there are few substitutes.
C) the purchase of a soft drink represents a large portion of a person's budget.
D) none of the above.

Question

Quizplus · Accepted Answer

The demand for diet soft drinks (as a group) is relatively inelastic because there are few substitutes available for people who are looking for a low-calorie soft drink option. As a result, consumers are more likely to continue purchasing diet soft drinks even if the price were to increase, making the demand relatively inelastic.

The Demand for Diet Soft Drinks (As a Group) Is