The food and beverage manager at an upscale country club once offered a two-for-one happy hour price for all alcoholic beverages,only to see a very little response to the special.For these consumers,demand for alcoholic beverages is:
A) cross-price elastic.
B) derived demand elastic.
C) price elastic.
D) price inelastic.
E) status quo elastic.

Question

Quizplus · Accepted Answer

The fact that there was very little response to the two-for-one happy hour price suggests that demand for alcoholic beverages is not very sensitive to changes in price, making it price inelastic.

The Food and Beverage Manager at an Upscale Country Club