Which of the followng has the higher price elasticity of demand?

Question

Oranges or Sunkist oranges

Car or salt

Foreign travel in the short run or foreign trave in the long run

Please explain why.

Thanks.

Answer 1

The Higher the Elasticity the more the price is affected by supply/demand....

Oranges are somewhat Elastic

Sunkist Is Elastic

Cars are Elastic

Salt is Inelastic (No matter what the price people will still buy)

Foreign Travel is Elastic (A too high of a price will discourage traveling...)

Answer 2

Goods with many substitutes, or that are not essential, have higher elasticities. Goods that are considered luxuries, or whose purchase can be easily postponed, often have elastic demand.

Sunkist oranges have a higher elasticity because it is not essential to buy Sunkist over unbranded name oranges.

Cars in general are elastic but if it's a specific model then it would have a higher elasticity.

Foreign travel in the future would have a higher elasticity. Over the long run this would be true because there are other substitutes to traveling