QUESTION IMAGE
Question
if the price of both organic eggs and non - organic eggs increases, which one would have the highest responsiveness of quantity demanded to this change in price?
organic eggs
eggs
Organic eggs are generally considered a more luxury or specialized product compared to regular eggs. They have more substitutes in the market (such as non - organic eggs). When the price of organic eggs increases, consumers can more easily switch to non - organic eggs or other egg alternatives. In contrast, eggs in general are a staple food item with fewer close substitutes in the short - run. So, the quantity demanded of organic eggs is more responsive to price changes.
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Organic eggs