Asked by Allie Andrews on Jun 09, 2024
Verified
The demand for grape-flavored Hubba Bubba bubble gum is likely
A) inelastic because there are many close substitutes for grape-flavored Hubba Bubba.
B) elastic because there are many close substitutes for grape-flavored Hubba Bubba.
C) inelastic because the market is broadly defined.
D) elastic because the market is broadly defined.
Grape-Flavored
An adjective describing products, often food or beverages, that mimic the taste of grapes.
- Determine the elements influencing demand's price elasticity, including the period of consideration, access to comparable substitutes, how the market is characterized, and the nature of the good as a necessity or indulgence.
Verified Answer
TP
Tonya PoseyJun 16, 2024
Final Answer :
B
Explanation :
The demand for grape-flavored Hubba Bubba bubble gum is considered elastic because there are many close substitutes available. When consumers have a variety of similar options to choose from, they are more sensitive to changes in the price of any one product, making the demand for that product elastic.
Learning Objectives
- Determine the elements influencing demand's price elasticity, including the period of consideration, access to comparable substitutes, how the market is characterized, and the nature of the good as a necessity or indulgence.