Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

Why is the price elasticity of demand for one specific brand of coffee likely to be greater than the price elasticity of demand for coffee as a whole?

  • ACoffee in general takes up a higher proportion of consumers’ income.
  • BConsumers may be very loyal to a particular brand of coffee.
  • CThere are more substitutes for a particular brand of coffee than for coffee in general.
  • DTotal demand for coffee is higher than for any one brand.

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