Sally Is an Average Shopper, with Average Income

question 276

Multiple Choice

Sally is an average shopper, with average income. When she is in the store she buys a few items which cost more than $20, several items which cost between $5 and $20, and many items which cost less than $1. The price elasticity of Sally's demand for these goods most likely ____.

• A) increases as the price decreases
• B) decreases as the price decreases
• C) increases as the price increases
• D) decreases as the price increases
• E) remains constant over all price ranges