A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon,it sold the same amount of milk per week (165 gallons).Since everything else remained the same,we would say the
A)demand for milk is perfectly elastic
B)demand for milk is elastic
C)demand for milk is perfectly inelastic
D)demand for milk is unitary elastic
E)law of supply does not apply in this situation

Question

Quizplus · Accepted Answer

The demand for milk is perfectly inelastic because the quantity demanded did not change despite the increase in price.

A Local Store Noticed That When It Increased the Price