Final answer:
Toothpaste is likely to have inelastic demand due to it being a necessity product with relatively few close substitutes.
Step-by-step explanation:
The price elasticity of demand measures how sensitive the quantity demanded is to changes in price. It is determined by several factors:
- Availability of close substitutes: Products with many close substitutes tend to have elastic demand, as consumers can easily switch to alternatives if the price increases.
- Necessity or luxury: Necessities like toothpaste tend to have inelastic demand, as consumers are less sensitive to price changes for these products.
- Time: Demand for toothpaste in the short-run is more likely to be inelastic, as consumers may consider it a necessary product. However, in the long-run, demand may become more elastic as consumers have more time to adjust their preferences and habits.
Based on these determinants, toothpaste is likely to have inelastic demand, as it is a necessity with relatively few close substitutes.