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24 February, 22:51

Which product is most likely to be the most price elastic?

milk

housing

clothing

automobiles

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Answers (1)
  1. 25 February, 01:45
    0
    automobiles

    Explanation:

    Price elastic describes the relationship between changes in demand as a result of changes in the price. Price elasticity describes how a product's demand responds to a change in its price. Goods or services are price elastic if a small change in price causes considerable differences in their demand.

    In this case, automobiles will be more elastic. Changes in their prices will result in significant changes in demand. An increase in the price of automobiles will result in consumers considering other means of transportation. When price decrease, many commuters will opt to but cars. Milk, housing, and clothing are basic needs. People need them for survival. An increase or a decrease in their prices will not change their demand in a big way. They are price inelastic.
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