According to a Study of the Price Elasticities of Products

question 49

Multiple Choice

According to a study of the price elasticities of products sold in supermarkets, the price elasticity of demand for toothpaste is estimated at -0.45.Which of the following could explain why the price elasticity of demand for toothpaste is so low?

• A)The toothpaste industry is highly competitive.
• B)Toothpaste is relatively inexpensive.
• C)Toothpaste is heavily endorsed by dentists.
• D)There are few close substitutes for toothpaste.

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