Question

If the price of organic beef steak, regular beef steak, and pork chops each increased by 10%. Which of the products would you think was the most elastic. In other words, which has the most change to the quantity demanded because of the increase in price?

Answer 1

organic beef steak

Explanation:

Out of the three options provided, the one that would suffer the biggest change in elasticity would be the organic beef steak. This is because out of the three, the organic beef steak is normally the most expensive product. Adding an extra 10% to the regular price would make it that much more expensive and turn many people away from this product. Therefore, causing its demand to drop drastically as price increases. Since the other products are not as expensive/high-end demand may drop a little but not by much.