Which of the following would most likely be the price elasticity of demand for high cholesterol medicine prescribed to an overweight person?
A) -0.01
B) -0.50
C) -1
D) -5
E) -10

Question

Quizplus · Accepted Answer

The price elasticity of demand for high cholesterol medicine prescribed to an overweight person is likely to be very inelastic, meaning that changes in price have a very small effect on the quantity demanded. This is because such medication is typically considered a necessity for those it is prescribed to, making them less sensitive to price changes. Therefore, an elasticity closer to 0 (option A) is the most likely.

Which of the Following Would Most Likely Be the Price