Which of the following is likely to have the most price inelastic demand?

Which of the following is likely to have the most price inelastic demand?

a. mint-flavored toothpaste

b. toothpaste

c. Colgate mint-flavored toothpaste

Answer: b. toothpaste

Price elasticity of demand refers to the capacity by which the quantity demanded of a specific good or service changes in complement with the price changes of that good or service. According to the degree of price elasticity of demand, toothpaste can also be presumed to come under category ‘A’, which means it is going to have more inelastic demand. Since toothpaste is a necessary product used for cleaning teeth; buyers do not so much value the price changes of such products. Consumers may not reduce the usage of toothpaste even if the price rises, because toothpaste is among the indispensable goods in people’s perception. In contrast, specific brands and flavours of the toothpaste, such as mint, or Colgate mint-flavoured would be classified as having high elastic demand as most buyers can conveniently switch to another brand or flavour in the event the price is hiked. And so, the demand for the broader category that is toothpaste is normally considered to be inelastic than the demand for individual varieties or brands.