Kenji tells the manager at Moo's Ice Cream that he won't buy any ice cream cones costing more than $2,but he will buy a limitless number at any price less than $2.His price elasticity of demand for ice cream cones is
A) perfectly inelastic.
B) inelastic.
C) unitary elastic.
D) elastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

Kenji's willingness to buy an unlimited number of ice cream cones at prices below $2 but none at prices above $2 indicates a perfectly elastic demand. This means his quantity demanded changes infinitely with a tiny change in price, as long as the price is below his maximum willingness to pay.

Kenji Tells the Manager at Moo's Ice Cream That He