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 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 lack of response to the two-for-one happy hour price indicates that demand for alcoholic beverages at this country club is price inelastic, meaning that consumers are not very responsive to changes in price.

The Food and Beverage Manager at an Upscale Country Club