Question

I need to understand why fruits such as grapes and tomatoes are more elastic than carrots/lettuce. I don't understand why this is the case.

Answer 1

Elasticity implies the degree of responsiveness of quantity demanded/supplied due to change in the price level, keeping other factors constant. Fruits and tomatoes are considered to be elastic in nature because Amy change in the price would impact the quantity demanded. For instance if the price of fruits like grapes rises by $2 then the quantity demanded would definitely fall.

Whereas goods like lettuce and carrots are necessity goods and often categories as inelastic in nature. As the change in prices would not impact the quantity demanded. Carrots and lettuce have become part of daily staple diet and it is almost impossible to live without them. On the other side goods like fruits are considered to be mildly luxurious goods