Question

The demand for Godiva mint chocolates is likely quite elastic because a. there are many close substitutes. b. this particular type of chocolate is viewed as a luxury by many chocolate lovers. c. the market is narrowly defined. d. All of the above are correct.

Answer 1

Answer:

D) All of the above are correct.

Explanation:

There are dozens of different close substitutes to Godiva chocolates, from expensive high quality chocolates to cheap M&Ms.

Since Godiva chocolates are expensive, they are considered a luxury product and luxury products usually have a very elastic demand.

Godiva chocolates are a niche product (they are not common, they are gourmet chocolates and are expensive), so their market is very narrowly defined.