Asked by Maria Moreno on Sep 24, 2024
Verified
The demand for Dell laptops is more price elastic than the demand for laptops as a whole.This can be best explained by the fact that
A) There are fewer substitutes for Dell laptops than for laptops as whole
B) There are more substitutes for Dell laptops than for laptops as whole
C) Dell laptops are luxurious goods
D) Dell laptops are a necessity
Price Elastic
Refers to the responsiveness of the demand or supply of a good to changes in its price.
Dell Laptops
Portable computers manufactured by Dell Inc., known for their customizable features and wide range of models for various user needs.
Substitutes
Products or services that can be used in place of each other based on their utility.
- Understand the determinants influencing demand elasticity.
Verified Answer
MR
Megan Roselli1 day ago
Final Answer :
B
Explanation :
The demand for a specific brand like Dell laptops is more price elastic because there are more substitutes available. If the price of Dell laptops increases, consumers can easily switch to other brands, making the demand for Dell more sensitive to price changes compared to the demand for laptops as a whole, where fewer direct substitutes exist.
Learning Objectives
- Understand the determinants influencing demand elasticity.