For Which of the Following Is Demand Most Likely to Be

question 184

Multiple Choice

For which of the following is demand most likely to be perfectly inelastic?

• A)BMW automobiles
• B)Pepsi Cola
• C)hot dogs
• D)insulin
• E)Tylenol

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Own Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that same good, reflecting consumers' sensitivity to price changes.