E₁ is demand elasticity for Minute Maid orange juice,E₂ is demand elasticity for all orange juice,and E₃ is demand elasticity for all fruit drinks.Then A)|E₁| |E₂| |E₃| B)|E₂| |E₃| |E₁| C)|E₃| |E₁| |E₂| D)|E₃| |E₂| |E₁|

Question

E₁ is demand elasticity for Minute Maid orange juice,E₂ is demand elasticity for all orange juice,and E₃ is demand elasticity for all fruit drinks.Then A)|E₁| > |E₂| > |E₃| B)|E₂| > |E₃| > |E₁| C)|E₃| > |E₁| > |E₂| D)|E₃| > |E₂| > |E₁|

Quizplus · Accepted Answer

The demand elasticity for a specific brand (Minute Maid orange juice) is higher than for the broader category of all orange juice, which in turn is higher than for the even broader category of all fruit drinks. This is because consumers have more substitutes for a specific brand than for a category of products, making the demand for the specific brand more elastic.

E1 Is Demand Elasticity for Minute Maid Orange Juice,E2 Is

E₁ Is Demand Elasticity for Minute Maid Orange Juice,E₂ Is