Consider this situation: Molson raises the price of a case of beer by $2.00 and Labatt follows suit. Consumers tolerate such an increase and purchase the same quantities of beer as before. In this case, demand is
A) complementary.
B) marginal.
C) elastic.
D) inelastic.
E) cross-elastic.

Question

Quizplus · Accepted Answer

The demand is inelastic because consumers continue to purchase the same quantities despite the price increase, indicating that their demand is not sensitive to price changes.

Consider This Situation: Molson Raises the Price of a Case