Jill Borts Believes That the Price Elasticity of Demand for Her

question 183

Multiple Choice

Jill Borts believes that the price elasticity of demand for her economics textbook is relatively inelastic. She argues "I was told I had to purchase a book written by Hubbard and O'Brien that is required by my instructor. If I wanted to buy a mystery novel I would have many authors to choose from. Therefore, the demand for mystery novels is more elastic than the demand for my textbook." Is Jill correct?

• A) The demand for the textbook is more inelastic, but Jill's reasoning is incorrect. The reason the textbook has an inelastic demand is that it is more expensive than any novel.
• B) She is correct.
• C) She is confused. She should have concluded that the textbook has a more elastic demand than a novel.
• D) She is correct that the textbook has a more inelastic demand, but that is because most students pay for their textbooks with credit or debit cards. Most people pay for novels and other books with cash or by check.

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Definitions:

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders, such as bacteria, viruses, and cancer cells.

Red Blood Cells

Blood cells responsible for carrying oxygen from the lungs to the body and carbon dioxide from the body to the lungs.

Antibodies

Proteins produced by the immune system to identify and neutralize foreign objects such as bacteria and viruses.

Antigens

Substances that the immune system recognizes as foreign and against which it mounts an immune response.