Each week Bill buys exactly 7 bottles of cola regardless of its price.Bill's own price elasticity of demand for cola in absolute value is:
A)greater than one.
B)less than one.
C)one.
D)zero.

Question

Quizplus · Accepted Answer

Bill's own price elasticity of demand for cola is zero as he buys the same quantity of 7 bottles every week regardless of the price. Hence, his demand is not sensitive to changes in price, making his elasticity zero.

Each Week Bill Buys Exactly 7 Bottles of Cola Regardless