What would you predict about the relative price elasticity of demand for brown leather hiking boots?

The demand for brown leather hiking boots is:

A. more price elastic than the demand for hiking boots, since the product group of brown leather hiking boots is broader than the product group of hiking boots.

B. less price elastic than the demand for hiking boots, since the product group of brown leather hiking boots is narrower than the product group of hiking boots.

C. less price elastic than the demand for hiking boots, since the product group of brown leather hiking boots is broader than the product group of hiking boots.

D. more price elastic than the demand for hiking boots, since the product group of brown leather hiking boots is narrower than the product group of hiking boots.

The relative price elasticity of demand for brown leather hiking boots depends on the relationship between the demand for brown leather hiking boots and the demand for hiking boots in general. If the demand for brown leather hiking boots is more price elastic than the demand for hiking boots, it means that consumers are more responsive to changes in the price of brown leather hiking boots compared to hiking boots as a whole. On the other hand, if the demand for brown leather hiking boots is less price elastic than the demand for hiking boots, it means that consumers are less responsive to changes in the price of brown leather hiking boots compared to hiking boots as a whole.

Explanation:

The relative price elasticity of demand for brown leather hiking boots depends on the relationship between the demand for brown leather hiking boots and the demand for hiking boots in general. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is determined by factors such as the availability of substitutes, the necessity of the product, and the proportion of income spent on the product.

If the demand for brown leather hiking boots is more price elastic than the demand for hiking boots, it means that consumers are more responsive to changes in the price of brown leather hiking boots compared to hiking boots as a whole. This could be because brown leather hiking boots have more substitutes available or because they are considered a luxury item that consumers are willing to forgo if the price increases.

On the other hand, if the demand for brown leather hiking boots is less price elastic than the demand for hiking boots, it means that consumers are less responsive to changes in the price of brown leather hiking boots compared to hiking boots as a whole. This could be because brown leather hiking boots are considered a necessity for certain outdoor activities and consumers are willing to pay a higher price for them.

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