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In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?

the different brands are almost identical. I always buy the cheapest"
"I use so little of that product that when I do buy it, I don't pay much attention to the price"
"The brand I buy is so superior to other available brands that I hardly consider the others"
"I pinch pennies in buying other products, but like most people I feel I owe it to myself to the best brand of this product

Respuesta :

Answer:

The price elasticity of demand for a product represents the percentage change in the demand of a product due to the percentage change in the price of that product. If the answer is greater than 1, it tells that the product is very elastic and if there will be just a little change in the price of the product, it will result in a greater percentage change in the demand for that same product.

Therefore, i think the statement which best describes the situation is "I pinch pennies in buying other products, but like most people i feel i owe it to myself to the best brand of this product".

Hope this helps you. Good Luck Lad.

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