The demand for Farm fresh brand apple juice is likely to be:
A) very price elastic, because there are many close substitutes available.
B) less price elastic, because there are many close substitutes available.
C) very price elastic, because the adjustment time is so fast.
D) less price elastic, because the adjustment time is so slow.

Question

Quizplus · Accepted Answer

The presence of many close substitutes makes the demand for Farm fresh brand apple juice very price elastic. Consumers can easily switch to a different brand of apple juice or even a different type of fruit juice if the price of Farm fresh apple juice increases.

The Demand for Farm Fresh Brand Apple Juice Is Likely