Suppose That David Buys the Same Number of Energy Drinks

question 32

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 David's demand for energy drinks?

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

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Definitions:

Market Price

The prevailing rate at which a good or service is available for purchase or sale in the public market.

Inelastic

A characteristic of demand or supply that signifies a limited response to changes in prices or other economic factors.

Unit Elastic

A situation where a percentage change in the price of a good results in an equal percentage change in the quantity demanded.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.