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The reason a brand name item (e.g., Tyson chicken) has a larger price elasticity than a class or a broad group of items (e.g., chicken)
The reason a brand name item (e.g., Tyson chicken) has a larger price elasticity than a class or a broad group of items (e.g., chicken) is that
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- there are fewer substitutes for chicken generally than for Tyson chicken.
- it takes a lot of time to adjust to a substitute brand of chicken.
- the share of income spent on "chicken" is larger than spent on "Tyson Chicken".
- there are fewer substitutes for Tyson chicken than for chicken generally.
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