Sellers of bottled water find that whether the price falls or rises,the quantity bought by consumers remains unchanged every week.The price elasticity of demand for bottled water is
A) inelastic.
B) elastic.
C) perfectly inelastic.
D) perfectly elastic.
E) unitary elastic.

Question

Quizplus · Accepted Answer

Since the quantity demanded of bottled water remains unchanged regardless of the price changes, the price elasticity of demand is perfectly inelastic. This indicates that consumers view bottled water as a necessity and are willing to pay any price for it, which makes demand for bottled water insensitive to price changes.

Sellers of Bottled Water Find That Whether the Price Falls