Alice says that she would buy one banana split a day regardless of the price. If this is the case:
A) Alice's demand for banana splits is perfectly inelastic
B) Alice's price elasticity of demand for banana splits is one
C) Alice's income elasticity of demand for banana splits is negative
D) none of the above answers is correct

Question

Quizplus · Accepted Answer

Alice's statement suggests that the price of banana splits does not affect her demand for them. In other words, her demand is not responsive to changes in price, indicating that her demand is perfectly inelastic.

Alice Says That She Would Buy One Banana Split a Day