How elastic is soda? Are Coke and Pepsi really that different in taste? I don’t really think so. Whenever I go to the grocery store I buy whatever is cheaper. Sometimes, I don’t even buy Coke or Pepsi. I’ll buy Meijer or Kroger brand soda. Sure there are those devoted Coke only or Pepsi only drinkers. But I’m not willing to pay a couple extra dollars for a certain brand of soda when I think they both taste the same. Soda is elastic because there are numerous amounts of substitutes. But couldn’t we also say that it is inelastic because the difference in taste is really not all that different? It’s not a luxury, or at least in our country it isn’t. There are a lot of close substitutes. Prices may change a little bit but it’s not as though Coke costs $10 per can and Pepsi costs $1 per can. So, I think soda is inelastic. The quantity demanded of soda does not change dramatically based on how much it costs, whether it is Coke or Pepsi.