If Maria spends a fixed dollar amount per week on movie rentals regardless of changes in the price, Maria's demand for movie rental can be considered
A) elastic.
B) unit elastic.
C) inelastic.
D) There is no sufficient information to determine the price elasticity.

Question

Quizplus · Accepted Answer

Maria's demand is unit elastic because she spends a fixed amount on movie rentals regardless of price changes, indicating that the percentage change in quantity demanded equals the percentage change in price.

If Maria Spends a Fixed Dollar Amount Per Week on Movie