Nita is a devoted Coca-Cola consumer,whereas Becky can drink either Coca-Cola or Pepsi products.Nita's demand for Coca-Cola will be relatively more ________,while Becky's demand will be relatively more ________.
A) elastic; inelastic
B) unrelated to price; elastic
C) perfectly elastic; elastic
D) inelastic; elastic
E) unitary elastic; inelastic

Question

Quizplus · Accepted Answer

Nita has a devoted preference towards Coca-Cola, which means she is less likely to switch to another brand and will have a relatively inelastic demand. On the other hand, Becky has a more flexible preference and can switch to either Coca-Cola or Pepsi, making her demand relatively more elastic.

Nita Is a Devoted Coca-Cola Consumer,whereas Becky Can Drink Either