Perfume industry statistics show that over the past five years,the number of bottles of perfume sold decreased by 30%,but the total dollar amount spent by consumers was unchanged.This means that
A)consumers were unresponsive to changes in price,i.e.,the percentage change in quantity demanded was less than the percentage change in price.
B)demand was elastic.
C)demand was inelastic.
D)demand was unitary elastic.
E)both a and c

Question

Quizplus · Accepted Answer

The total revenue remained unchanged despite a decrease in quantity sold, indicating that the percentage change in price was equal to the percentage change in quantity demanded, which is characteristic of unitary elastic demand.

Perfume Industry Statistics Show That Over the Past Five Years,the