[amp_mcq option1=”highly elastic” option2=”elastic” option3=”inelastic” option4=”None of the above” correct=”option2″]<\/p>\n
The correct answer is: B. elastic<\/strong><\/p>\n Demand for comforts is elastic because consumers are willing to substitute other goods for comforts when the price of comforts increases. For example, if the price of coffee increases, consumers may substitute tea or hot chocolate.<\/p>\n A. Highly elastic<\/strong> demand is a situation in which a small change in price will lead to a large change in demand. This is often the case for luxury goods, such as jewelry or designer clothes.<\/p>\n C. Inelastic<\/strong> demand is a situation in which a large change in price will lead to a small change in demand. This is often the case for essential goods, such as food or water.<\/p>\n D. None of the above<\/strong> is not a correct answer because demand for comforts is elastic.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”highly elastic” option2=”elastic” option3=”inelastic” option4=”None of the above” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-46342","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n