QUESTION 10 It is an important tradition in the Santos famil

QUESTION 10 It is an important tradition in the Santos family that they eat Sunday dinner at their favorite restaurant every week. By contrast, the Chen family spends exactly $50 for their Sunday meal at whatever restaurant sounds best to them Which family has the more elastic demand for restaurant food? O A the Chen family B. the Santos family Not enough information

Solution

\"Chen\'s Family\"

Elastic demand means if the price of the restaurant changes the Chen family will move to another place. But the Santos family has a more specific choice and their demand is more inelastic i.e. even if the price increase or decrease they will stick to their favorite restaurant. The answer is \"A\" Chen\'s Family.