Asked by Benjamin Leonard on May 19, 2024
Verified
While shopping at the supermarket, Selina was dismayed to find that the price of orange juice was now 50% more than what she was used to paying. As a result, Selina purchased grapefruit juice, which was closer to what she usually pays. Based on this example, orange juice is ______.
A) a necessity
B) a luxury good
C) inelastic
D) elastic
Elastic
Describes a situation in economics where the demand or supply of a good or service is sensitive to changes in price.
Necessity
An indispensable requirement or need for something; often something that is essential for survival or to carry out a specific task.
Luxury Good
A product or service that is considered to be of high quality and high price, often seen as a status symbol.
- Explain consumer behavior and responses to price changes in various product categories.
Verified Answer
JA
Joshua AngelesMay 24, 2024
Final Answer :
D
Explanation :
The fact that Selina decided to purchase grapefruit juice instead of orange juice when its price increased suggests that her demand for orange juice is sensitive to price changes, which is characteristic of an elastic good.
Learning Objectives
- Explain consumer behavior and responses to price changes in various product categories.