Which of the following is likely to have the most inelastic price elasticity of demand?
A)Automobiles.
B)Pickup trucks.
C)Hondas.
D)The Hondas one Honda dealer sells.

Question

Quizplus · Accepted Answer

Automobiles are likely to have the most inelastic price elasticity of demand because they are often considered a necessity and have few substitutes. Consumers may be willing to pay a higher price for a car they need rather than going without one. Additionally, cars are a durable good that typically last several years, meaning that consumers are less sensitive to price changes in the short term.

Which of the Following Is Likely to Have the Most