The demand for a heart transplant would be considered price:

• A. inelastic
• B. unit elastic
• C. perfectly elastic
• D. elastic

Answer: (A)

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: Recall the definitions of elasticity types: if demand is elastic, quantity demanded changes more than the price change; if inelastic, quantity demanded changes less than the price change; if unit elastic, quantity demanded changes exactly proportionally; and if perfectly elastic, consumers will only buy at one price and none at others.
3. Step 3: Consider the nature of the good in question — a heart transplant is a life-saving medical procedure with no close substitutes, making consumers (patients) less sensitive to price changes because the need is urgent and essential.
4. Step 4: Based on this, recognize that the demand for a heart transplant is likely to be price inelastic, meaning that changes in price have little effect on the quantity demanded.
5. Step 5: Conclude that the correct classification for the demand of a heart transplant is 'inelastic' because the quantity demanded does not significantly decrease even if the price rises.