Recently, Much of the Western United States Experienced a Drought

Multiple Choice

Recently, much of the western United States experienced a drought condition and water usage was restricted in Denver. Yet, even though most people used less water, the price of water did not drop. When the drought was declared over, the water company raised water prices. However, the residents of Denver did not use less water. Here, water is

A) price-elastic.
B) price-sensitive.
C) price-inelastic.
D) price-insensitive.
E) unitary-elastic.