Kevin tells the manager at Moo's Ice Cream that he won't buy any ice cream cones costing more than $2, but he will buy a limitless number at any price less than $2. His price elasticity of demand for ice cream cones is:
A) perfectly inelastic.
B) inelastic.
C) unitary elastic.
D) elastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

Kevin's demand is perfectly elastic because he will only buy ice cream cones at prices below $2 and none at prices above $2, indicating an infinite sensitivity to price changes at the $2 threshold.

Kevin Tells the Manager at Moo's Ice Cream That He