Asked by Emily Jackson on May 30, 2024
Verified
Hailey says that she would smoke one pack of cigarettes each day regardless of the price. If she is telling the truth, Hailey's
A) demand for cigarettes is perfectly inelastic.
B) price elasticity of demand for cigarettes is infinite.
C) income elasticity of demand for cigarettes is 0.
D) demand for cigarettes is unit elastic.
Perfectly Inelastic
A situation where the demand for a product does not change in response to price changes.
- Discern the variance between perfectly inelastic, perfectly elastic, inelastic, elastic, and unit elastic demand.
Verified Answer
SC
Sandra CastanedaMay 30, 2024
Final Answer :
A
Explanation :
Hailey's statement indicates that her quantity demanded for cigarettes does not change with price, which is the definition of perfectly inelastic demand.
Learning Objectives
- Discern the variance between perfectly inelastic, perfectly elastic, inelastic, elastic, and unit elastic demand.