Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of each container.Jacquelyn's price elasticity of demand for ice cream is:
A)0.
B)1.
C)greater than 1.
D)less than 1 but greater than 0.

Question

Quizplus · Accepted Answer

Jacquelyn's spending remains constant at $50 regardless of price changes, indicating unitary elasticity, where the percentage change in quantity demanded equals the percentage change in price.

Each Month Jacquelyn Spends Exactly $50 on Ice Cream Regardless