Question

FreshLeaf is a commercial salad maker that produces "salad in a bag" that is sold at many local supermarkets. Its customers like lettuce but don’t care so much what type of lettuce is included in each bag of salad, so you would expect FreshLeaf’s demand for iceberg lettuce to be:

a) elastic
b) inelastic
c) unit elastic
d) all of the above

Answer 1

Fresh Leaf’s demand for iceberg lettuce to be elastic .

Option A

Explanation:

The quantity of a product is the demand for a given time period, which the customers are prepared to buy at different prices. The price-quantity relationship required is also called the demand slope.

Demand for a good is said to have been "elastic," when a small price change leads to people wanting more or even less good. The demand for a commodity is ' inelastic ' if a small price increase does not cause people to give up what they want of it or even change what they want.

This means that the required quantity proportional change is separated by the percentage from one of the dependent variables.

Price elasticity is often used in economics to demonstrate that the quantity needed by the product or service to a rise in prices with price change are the only reactivity, or elasticity, of the product or service.