Answer :
Final answer:
The most elastic demand among the options is likely for a specific brand name of hiking boots due to the abundance of substitutes. In contrast, broader categories like footwear have lower elasticity because they include various products. More specificity increases the responsiveness of consumers to price changes.
Explanation:
Understanding Demand Elasticity
In economics, demand elasticity measures how responsive the quantity demanded of a good is to changes in its price. The choices given involve different levels of specificity and, consequently, different elasticities of demand.
Among the options:
- Boots
- Hiking Boots
- Footwear
- A Specific Brand Name of Hiking Boots
- Rugged Boots
The most elastic demand is likely to be for a specific brand name of hiking boots. This is because it is a single product with available substitutes (other brands of hiking boots) that consumers can easily switch to if prices rise. For example, if the price of a popular brand of hiking boots increases, consumers might immediately look for alternatives like another brand, reflecting high elasticity.
In contrast, the demand for more general categories like footwear is less elastic because they encompass a wider range of products. If prices increase for all footwear, consumers would not reduce their purchases as significantly because they still need shoes. Similarly, other options like boots, while somewhat elastic, do not match the high elasticity seen in specific brand demand. Therefore, more market specificity results in more elastic demand.
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