Other things equal, which of the following goods would have the most inelastic price elasticity of demand?
A.A t-shirt from The Gap (a famous American retail store).
B.All red t-shirt sold in the U.S.
C.All shirts, of any color, sold in the U.S.
D.A red t-shirt from Macy's (a large department store)
A. A t-shirt from the Gap (a famous American retail store).
Since Gap is a brand and most of its customers are loyal to the brand, a slight increase in the price would not affect its demand by much and hence the demand curve is very inelastic.
Other things equal, which of the following goods would have the most inelastic price elasticity of...
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