Question

A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.

A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand?
A home heating system in Canada
Diamond necklace
The price elasticity of demand for a good also depends on how you define the good.
Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.
Categories
Most Elastic
In Between
Least Elastic
Food Red bell peppers Vegetables The price elasticity of demand is also affected by the given time horizon.
If the price of gasoline is relatively high for a long time, consumers are more likely to buy more fuel-efficient cars or switch to alternatives like public transportation. Therefore, the demand for gasoline is elastic in the short run than in the long run.

Answer 1

Step-by-step explanation:

Least elastic demand: A home heating system in Canada

People will still purchase a home heating system as it is needed. The necklace is nice to have, but not needed.

The price elasticity of demand for a good also depends on how you define the good.

Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.

Food Least Elastic

Red bell peppers Most Elastic

Vegetables In Between

The choices really depend on personal preferences. Prople need food, so it will have the least elastic demand. Whether Bell Peppers or Vegatables are preferred is a matter of opinion. I vote for vegatables having in between elastic demand. Bell Peppers are OK, but vegetables offer a greater variety of options.