Which of the following products will have elastic demand?
A) Gasoline.
B) Cigarettes.
C) European travel.
D) Alcohol.

Question

Quizplus · Accepted Answer

European travel is a luxury item that people can easily avoid if prices rise; therefore, it is likely to have elastic demand. The other items (gasoline, cigarettes, and alcohol) are considered necessity or addictive goods, which means that consumers are less likely to alter their consumption habits due to changes in price, resulting in inelastic demand.

Which of the Following Products Will Have Elastic Demand