asked 140k views
2 votes
Which of the following do you think would have the highest elasticity of demand and

why?
A. Medicine
B. Shoes
C. French perfume
D. Electricity
E. Band aids

1 Answer

6 votes

Final answer:

French perfume is likely to have the highest elasticity of demand among the given options. Luxury items like French perfume typically have more elastic demand compared to necessities like medicine or band-aids.

Step-by-step explanation:

The concept of elasticity of demand measures the responsiveness of the quantity demanded to a change in price.

Out of the given options, French perfume is likely to have the highest elasticity of demand. Luxury items like French perfume typically have more elastic demand compared to necessities like medicine or band-aids.

This is because luxury items have many substitutes available and consumers are more likely to reduce their demand if the price of French perfume increases.

In contrast, necessities like medicine or band-aids are likely to have less elastic demand as they are essential and have fewer substitutes available.

answered
User Jeisson
by
8.1k points
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