Suppose That David Buys the Same Number of Energy Drinks

question 96

Multiple Choice

Suppose that David buys the same number of energy drinks every weekend no matter what happens to the price of the energy drinks. What does this suggest about Davidʹs demand for energy drinks?

• A)It is elastic.
• B)It is perfectly inelastic.
• C)It is unitary elastic.
• D)It is not something that can be characterized without knowing the prices of the energy drinks.

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Definitions:

Commission Pay Program

A compensation strategy where employees are paid based on the sales or deals they secure, encouraging higher performance.

Salespersons' Behaviors

The actions and tactics used by sales professionals to engage customers, promote products or services, and close sales deals.

Employee Stock Ownership

A program in which employees own a stake in the company's stock, often aimed at improving employee engagement and loyalty.

Broad-Based Stock

An equity compensation strategy that grants stock options or restricted stock to a wide range of employees within a company, not just top executives.