Suppose the price of beans rises from $1

The answer is C) relatively inelastic. When something is relatively inelastic, it means that the increase in price is greater than the decrease in quantity demanded, which is the case we have here. There was a 100% increase in price for the beans and a 40% decrease in quantity demanded.

The answer could neither be B or D, perfectly inelastic or elastic, respectively. Something that is 'perfectly inelastic' means that despite any price increase, the quantity demand will not change. It is represented as a vertical line on a supply and demand graph.

The answer could not be perfectly elastic because 'perfectly elastic demand' indicates the market will completely stop purchasing a product/service should there be an increase in price.

We could argue that 'relatively elastic' would be a suitable answer because relatively elastic means small price changes cause large changes in quantity demanded. A $1 increase does not seem like a large change. However, if we're going by percentage, a 100% increase in price is a large change, not a small one, and a 40% decrease is a smaller change. Thus letter C, relatively inelastic, is the best answer.