Pierre says that he will spend exactly 75 cents a day on candy bars,regardless of the price of candy bars.Pierre's demand for candy bars is
A) perfectly elastic.
B) unit elastic.
C) perfectly inelastic.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Pierre's demand is unit elastic because he spends a constant amount of money (75 cents) on candy bars regardless of their price, indicating that the percentage change in quantity demanded is equal to the percentage change in price.

Pierre Says That He Will Spend Exactly 75 Cents a Day