Which items are most likely to be highly elastic? (Select all that apply.)

A) Apples

B) Jewelry

C) Water

D) Gasoline

Question

Damaris Lam

Business

26 October, 23:59

Which items are most likely to be highly elastic? (Select all that apply.)

A) Apples

B) Jewelry

C) Water

D) Gasoline

+2

Answers (1)

Know the Answer?

Charles Yang · Answer 1

A) Apple

Explanation:

Price elasticity describes how sensitive the demand for a product is a result of a change in price. A product is price elastic if a small change in price causes a big difference in its demand. A Product is price inelastic if a change in price does not create a significant change in its demand.

Apples will be more price elastic. Apple is fruit has may alternatives. As a fruit, apple competes with many others. A small increase in price will make consumers consider other fruits. If the price decreases, then the demand is likely to rise.

Water and gasoline are necessary goods. We need them for survival. An increase or decrease in price will have minimal changes in demand. Jewellery are luxury goods. They are bought for their value and worth. Changes in price will not affect their demand.

Which items are most likely to be highly elastic? (Select all that apply.)A) ApplesB) JewelryC) WaterD) Gasoline

Which items are most likely to be highly elastic? (Select all that apply.)

A) Apples

B) Jewelry

C) Water

D) Gasoline