Question

Suppose a study shows that the demand for Goodyear tires is more elastic than the demand for all tires. What could be a likely explanation for this? The demand for Goodyear tires could be more elastic than the demand for all tires because a) Goodyear tires are more of a necessity.b) Goodyear tires are less costly.c) Goodyear tires are more broadly defined.d) Goodyear tires have more close substitutes.e) Goodyear tires are consumed over a shorter period of time

Answer 1

The demand for Goodyear tires could be more elastic than the demand for all tires because Goodyear tires have more close substitutes

Step-by-step explanation:

The elasticity in the demand of a product is the increase or decrease in the demand for a product due to the change of a price, when the demand is more elastic means that the percentage change in the increase in the demand is bigger than the the percentage change in the fall in the price of a product and the percentage change in the fall the demand is bigger than percentage change in the rise of a product. A great example of an elastic demands is when a product has close substitutes, beacuse if the prices rices you can change the brand for other substitutes.