The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
A) perfectly elastic.
B) perfectly inelastic.
C) unitary elastic.
D) elastic.
E) inelastic.

Question

Quizplus · Accepted Answer

The statement by the president suggests that a change in price will have no impact on the quantity demanded of Tucker cars, indicating that the price elasticity of demand is perfectly inelastic.

The President of Tucker Motors Says, "Lowering the Price Won't