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 considered a luxury good.
D) There are few close substitutes for toothpaste.
Correct Answer:
Verified
Correct Answer:
Verified
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