question archive Jenny sells two types of milk, whole milk and organic whole milk, and 20 different types of snack foods
Jenny sells two types of milk, whole milk and organic whole milk, and 20 different types of snack foods
Subject:EconomicsPrice:2.88 Bought3
Jenny sells two types of milk, whole milk and organic whole milk, and 20 different types of snack foods. Based on this information, demand for whole milk will be more price inelastic or elastic than demand for potato chips, because whole milk:
A. has a broader market definition
B. is a luxury food
C. is a necessity good
D. has fewer substitutes
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- Jenny sells two types of milk, whole milk and organic whole milk, and 20 different types of snack foods. Based on this information, demand for whole milk will be more price inelastic than demand for potato chips, because whole milk D. has fewer substitutes
The whole milk is the good that is to be used generally by most of the people. Its demand would not vary much following a change in the price since there is only one substitute, that is, organic whole milk. On the other hand, potato chips will be price elastic since there are many substitutes, that is, 20 different types of snack foods.
