Suppose a Consumer Has the Following Rule of Thumb: Regardless

Multiple Choice

Suppose a consumer has the following rule of thumb: Regardless of how gasoline prices fluctuate, she will always buy $20 of gasoline per week and then adjust her driving patterns accordingly.We can then conclude the following:

A) Her own-price elasticity of demand is equal to -1.
B) Her income-elasticity of demand is 0.
C) Her own-price elasticity is 0.
D) Her income elasticity of demand is -1.
E) Both (a) and (b) .
F) Both (a) and (d) .
G) Both (c) and (d)
H) None of the above.