Each week Bill buys exactly 7 bottles of cola regardless of its price.Bill's own price elasticity of demand for cola IN ABSOLUTE VALUE is:
A) greater than 1.
B) less than 1.
C) 1.
D) zero.

Question

Quizplus · Accepted Answer

Bill's demand for cola is perfectly inelastic since his purchase quantity does not change regardless of the price. This is characterized by a price elasticity of demand of zero.

Each Week Bill Buys Exactly 7 Bottles of Cola Regardless