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vekshin1
3 years ago
8

Seth is a competitive body builder. He says he has to have his 12-oz package of protein powder to "feed his muscles" every day.

On the basis of this information, what can you conclude about his price elasticity of demand for protein powder?(A) It is perfectly inelastic(B) It is perfectly elastic(C) The price elasticity coefficient is 0(D) it is elastic
Social Studies
1 answer:
DaniilM [7]3 years ago
3 0

Answer:

(A) It is perfectly inelastic

Explanation:

Demand elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes. When price goes up and demand goes down a lot, demand is said to be price elastic. When price rises and demand does not change significantly, demand is said to be inelastic to price.

Demand is perfectly inelastic when changes in price will not alter demand at all. This occurs when the good is considered an essential good to the consumer. This is the case of a bodybuilder, who needs a certain product every day to maintain his muscles. This person gives so much value to the product that even if the price increase is considerable, he will not decrease consumption at all.

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