Consider these 3 items: coffee, Folger’s Coffee, and hot beverages.
Which item will have the highest elasticity of demand and why?
Which item will have the lowest elasticity of demand and why?
For each pair of items below determine which product would have the higher price elasticity of demand (in absolute value) and why.
a. Insulin for a diabetic or aspirin for someone suffering a headache.
b. A new Whirlpool 27 cu. ft. side-by-side refrigerator or electricity to power your all-electric home.
c. A can of Red Bull or soft drinks in general.