For Kelly comma there is no substitute for Diet Coke. It is the only thing that she likes to drink.
Based only on this information, Kelly's demand for Diet Coke would be expected to be
A.
relatively inelastic
.
B.
unitary
.
C.
relatively elastic
.
D.
There is not enough information to determine anything about elasticity.
A. relatively inelastic
Based on the information given, it can be inferred that Kelly's demand for Diet Coke is relatively inelastic. This is because she has stated that there is no substitute for Diet Coke, indicating that she is not responsive to price changes or alternatives and is willing to pay whatever price is necessary to have her preferred beverage. Therefore, the answer is A. relatively inelastic.
To determine the elasticity of Kelly's demand for Diet Coke based on the information given, we need additional information about how she would react to a change in the price of Diet Coke or the availability of substitute beverages. Since we do not have any information about her sensitivity to price changes or the availability of substitutes, we cannot accurately determine the elasticity of her demand.
Therefore, the correct answer is D. There is not enough information to determine anything about elasticity.