For which of the following purchases would the absolute price elasticity of demand be greatest?
A) A sports car
B) Utilities
C) Chewing gum
D) A cell phone

Name: For which of the following purchases would the absolute price elasticity of demand be greatest? A) A sports car B) Utilities C) Chewing gum D) A cell phone
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Question

Quizplus · Accepted Answer

Luxury items like sports cars tend to have a higher price elasticity of demand because consumers can delay or forego the purchase if prices rise, unlike necessities like utilities.

For Which of the Following Purchases Would the Absolute Price