Final answer:
For the pairs of goods mentioned, luxury cars, movie theater tickets, bottled water, and chocolate bars would have more elastic demand. This is because these items are less of a necessity, often have more alternatives, and their purchases can be more easily delayed or substituted compared to their counterparts.
Step-by-step explanation:
To determine which goods would have more elastic demand, we need to consider factors such as necessity, availability of substitutes, and proportion of income spent on the goods. Elastic demand occurs when the quantity demanded of a good is sensitive to price changes.
- A. Luxury cars vs. Generic toothpaste: Luxury cars would likely have more elastic demand because they are high-priced items and are not necessities. Consumers can delay purchases or select a cheaper alternative if prices rise.
- B. Prescription medications vs. Movie theater tickets: Movie theater tickets would generally have more elastic demand, as they are nonessential leisure activities and have many alternatives, while prescription medications are often necessary and have fewer substitutes.
- C. Gasoline vs. Bottled water: Bottled water would likely have more elastic demand because there are many substitutes for bottled water such as tap water, whereas gasoline is a necessity for many people with fewer direct substitutes.
- D. Insulin (for diabetics) vs. Chocolate bars: Chocolate bars would have more elastic demand due to the luxury nature of confectionery and the existence of numerous alternatives, while insulin is a lifesaving drug with inelastic demand for those in need.