Price elasticity of demand for a good depends in Part on how one defines the good. Of the following categories, which one has the least elastic demand?

a. Bell peppers.

b. Red bell peppers.

c. Food.

d. Vegetables.

The answer is c. food.

Elasticity is the percentage change in quantity demanded divided by the percentage change in price. The elasticity can be considered elastic, if the absolute value of elasticity is greater than one, or inelastic if it is less than one. A guideline is if a good is considered a luxury, or an item that one could do without, the demand will be elastic, but if the good is considered a necessity, the demand will be inelastic. Food is not a luxury it is a necessity for sustaining life. The demand for the broad category of food would be considered inelastic since it is a necessity for sustaining life.

Vegetables is a broader category that bell or red peppers but not as broad as food. It would have the second least elastic demand of the categories. Then between red or bell peppers one would not expect a significant difference in their elasticity.