Sarah has been told she has only one week to finish some pottery for a show. Sarah has exhausted her supply of clay, and new clay is absolutely necessary for finishing her products. For Sarah, the price elasticity of demand for new clay is elastic.

Question

Quizplus · Accepted Answer

The price elasticity of demand for new clay is likely inelastic because Sarah urgently needs the clay to finish her products, making her less sensitive to price changes.

Sarah Has Been Told She Has Only One Week to Finish