The demand for a heart transplant would be considered price:

• A. elastic, because consumers can easily find alternatives
• B. inelastic, because the procedure is essential and has few substitutes
• C. unit elastic, because quantity demanded changes proportionally with price
• D. perfectly elastic, because any price increase eliminates all demand

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of price elasticity of demand, which measures how much the quantity demanded of a good responds to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
2. Step 2: Identify the nature of the good or service in question—in this case, a heart transplant. Consider whether consumers have substitutes or alternatives and how essential the good is for consumers.
3. Step 3: Recognize that a heart transplant is a life-saving medical procedure with very few or no substitutes, making it essential for those who need it.
4. Step 4: Based on the essential nature and lack of substitutes, conclude that the demand for a heart transplant is price inelastic, meaning that changes in price have little effect on the quantity demanded.
5. Step 5: Contrast this with other types of elasticity: price elastic demand occurs when consumers can easily switch to alternatives; unit elastic means proportional change; perfectly elastic means demand drops to zero with any price increase. None of these fit the heart transplant scenario.