If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be:
A)relatively price elastic.
B)relatively income elastic.
C)relatively price inelastic.
D)unit elastic.
E)perfectly elastic.

Question

If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be:​
A)relatively price elastic.
B)relatively income elastic.
C)relatively price inelastic.
D)unit elastic.
E)perfectly elastic.

Quizplus · Accepted Answer

If Joe believes that nothing comes close to a Pepsi, he is unlikely to change his demand for Pepsi even if the price increases. This indicates that Joe's demand for Pepsi is relatively price inelastic.

If Joe Says That Nothing Comes Close to a Pepsi