Asked by Monisa Siddiqi on Jun 25, 2024
Verified
The demand for desserts tends to be more inelastic than the demand for red velvet cake.
Inelastic
A description of a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.
- Determine the influences on the elasticity of demand, along with distinguishing between goods deemed necessities and those considered luxuries.
Verified Answer
AR
Angelina RaindanceJul 01, 2024
Final Answer :
True
Explanation :
The demand for desserts is a broader category and includes a wide variety of options, making it less sensitive to price changes than the demand for a specific type of dessert like red velvet cake, which has more readily available substitutes.
Learning Objectives
- Determine the influences on the elasticity of demand, along with distinguishing between goods deemed necessities and those considered luxuries.