Exhibit 4-1 -Carla Buys One Soft Drink a Day, Regardless of the Regardless

question 44

Multiple Choice

Exhibit 4-1
-Carla buys one soft drink a day, regardless of the price. Which of the following statements is correct with respect to Carla?

• A)Price elasticity of demand for soft drinks is infinite.
• B)Price elasticity of demand for soft drinks is zero.
• C)Price elasticity of demand for soft drinks is 1.
• D)Cross-price elasticity of demand for soft drinks is 1.
• E)Price elasticity of demand cannot be calculated with the information given.

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