Carla Buys One Soft Drink a Day Regardless of the Price

question 19

Multiple Choice

Carla buys one soft drink a day regardless of the price. Which of the following statements is correct about Carla?

• A) Price elasticity of demand for soft drinks is 0.
• B) Price elasticity of demand for soft drinks is 1.
• C) Price elasticity of demand for soft drinks is undefined.
• D) Total expenditure will decrease if the price of soft drinks increases.
• E) There will be an increase in total expenditure if the price of soft drinks decreases.

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