Recently, Much of the Western U

Multiple Choice

Recently, much of the Western U.S. experienced drought conditions 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.