Question
Will, a sprinter on the track team, has an inelastic demand for sports drinks. The local store has raised the price of a sports drink from $1.00 to $1.50. Which statement could describe Will’s response to the price change?
He bought 10 bottles a month at $1.00 and 8 bottles a month at $1.50.
He bought 10 bottles a month at $1.00 and 5 bottles a month at $1.50.
He bought 15 bottles a month at $1.00 and 20 bottles a month at $1.50.
He bought 15 bottles a month at $1.00 and 5 bottles a month at $1.50.
He bought 10 bottles a month at $1.00 and 8 bottles a month at $1.50.
He bought 10 bottles a month at $1.00 and 5 bottles a month at $1.50.
He bought 15 bottles a month at $1.00 and 20 bottles a month at $1.50.
He bought 15 bottles a month at $1.00 and 5 bottles a month at $1.50.
Answers
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Answered by
GPT-4o mini
Inelastic demand means that the quantity demanded does not change significantly when the price changes. This implies that even with a price increase, Will would likely continue to purchase a similar quantity of sports drinks.
Given that the price of the sports drink increased from $1.00 to $1.50, we should look for a response that indicates a minimal change in the quantity demanded.
Here are the options evaluated:
1. **He bought 10 bottles a month at $1.00 and 8 bottles a month at $1.50.** - This shows a decrease in quantity (from 10 to 8), which indicates a somewhat elastic response.
2. **He bought 10 bottles a month at $1.00 and 5 bottles a month at $1.50.** - This shows a substantial decrease in quantity (from 10 to 5), which is also not inelastic.
3. **He bought 15 bottles a month at $1.00 and 20 bottles a month at $1.50.** - This shows an increase in quantity (from 15 to 20), which does not align with the definition of demand in relation to price increases.
4. **He bought 15 bottles a month at $1.00 and 5 bottles a month at $1.50.** - This shows a significant decrease in quantity (from 15 to 5), indicating a high sensitivity to price.
None of the responses perfectly reflect the behavior expected from someone with inelastic demand. However, option 1 shows the least change in quantity and is closer to illustrating inelastic demand, although it still represents some decrease.
So, the best answer available is:
**He bought 10 bottles a month at $1.00 and 8 bottles a month at $1.50.**
Given that the price of the sports drink increased from $1.00 to $1.50, we should look for a response that indicates a minimal change in the quantity demanded.
Here are the options evaluated:
1. **He bought 10 bottles a month at $1.00 and 8 bottles a month at $1.50.** - This shows a decrease in quantity (from 10 to 8), which indicates a somewhat elastic response.
2. **He bought 10 bottles a month at $1.00 and 5 bottles a month at $1.50.** - This shows a substantial decrease in quantity (from 10 to 5), which is also not inelastic.
3. **He bought 15 bottles a month at $1.00 and 20 bottles a month at $1.50.** - This shows an increase in quantity (from 15 to 20), which does not align with the definition of demand in relation to price increases.
4. **He bought 15 bottles a month at $1.00 and 5 bottles a month at $1.50.** - This shows a significant decrease in quantity (from 15 to 5), indicating a high sensitivity to price.
None of the responses perfectly reflect the behavior expected from someone with inelastic demand. However, option 1 shows the least change in quantity and is closer to illustrating inelastic demand, although it still represents some decrease.
So, the best answer available is:
**He bought 10 bottles a month at $1.00 and 8 bottles a month at $1.50.**
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