Exhibit 4-1 
-Carla buys one soft drink a day, regardless of the price. Which of the following statements is correct with respect to Carla?
A) Price elasticity of demand for soft drinks is infinite.
B) Price elasticity of demand for soft drinks is zero.
C) Price elasticity of demand for soft drinks is 1.
D) Cross-price elasticity of demand for soft drinks is 1.
E) Price elasticity of demand cannot be calculated with the information given.
Correct Answer:
Verified
Q63: A perfectly inelastic demand curve has a
Q64: A product with an inelastic demand means
Q65: A horizontal demand curve is
A)unit elastic.
B)relatively inelastic.
C)relatively
Q66: A perfectly elastic demand curve has a
Q67: If a 3 percent change in price
Q69: If demand is perfectly inelastic, then the
A)quantity
Q70: Good X has a high price elasticity
Q71: The elasticity of demand changes
A)along a vertical
Q72: For demand to be inelastic,
A)the percentage change
Q73: Exhibit 4-1 
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