Alyssa says that she would buy one banana split a day regardless of the price.Assume she is telling the truth,what do we know
A)Alyssa's demand for banana splits is perfectly inelastic.
B)Alyssa's demand for banana splits is perfectly elastic.
C)Alyssa's price elasticity of demand for banana splits is 1.
D)Alyssa's income elasticity of demand for banana splits is negative.

Question

Quizplus · Accepted Answer

Perfectly inelastic demand means that quantity demanded remains the same regardless of changes in price. Alyssa claims to buy one banana split every day, no matter the price. Therefore, her demand for banana splits is perfectly inelastic.

Alyssa Says That She Would Buy One Banana Split a Day