Explain why the demand for a particular brand of fast food tends to be more elastic than demand for all fast food.
What will be an ideal response?
One of the factors that affects the price elasticity of demand is the number of substitute goods available. For instance, a particular brand of hamburgers will face many substitutes, including not only other types of fast food but also other brands of hamburgers. If, however, the demand for hamburgers is broadly defined irrespective of different brands, the number of substitutes will be relatively small. Thus, the broader a market is defined, the less elastic is the demand.
You might also like to view...
In 1938, President Franklin D. Roosevelt signed the Fair Labor Standards Act which established a __________workweek
a. 35 hour b. 38 hour c. 44 hour d. 48 hour
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.