If Maria spends a fixed dollar amount per week on movie rentals regardless of changes in the price, Mariaʹs demand for movie rental can be considered:
A)elastic.
B)unit elastic.
C)inelastic.
D)There is not sufficient information to determine the price elasticity.

Question

Quizplus · Accepted Answer

Maria's spending a fixed dollar amount per week indicates that her demand is unit elastic, as her expenditure remains constant despite price changes.

If Maria Spends a Fixed Dollar Amount Per Week on Movie