The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Consider a medical breakthrough that led to the discovery of a simple microchip, which when inserted inside the human ear could prevent certain chronic diseases. The price elasticity of demand for that microchip would most likely be _____.
A)highly elastic
B)highly inelastic
C)undefined
D)negative only for high prices
E)positive only for high prices

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Consider a medical breakthrough that led to the discovery of a simple microchip, which when inserted inside the human ear could prevent certain chronic diseases. The price elasticity of demand for that microchip would most likely be _____.
A)highly elastic 
B)highly inelastic 
C)undefined 
D)negative only for high prices 
E)positive only for high prices

Quizplus · Accepted Answer

The demand for a medical breakthrough that prevents chronic diseases would likely be highly inelastic because consumers would prioritize their health over the cost, making them less sensitive to price changes.

The Figure Given Below Shows the Demand Curves for Five