Jean-Paul says that he will spend exactly 75 cents a day on M&Ms,regardless of the price of M&Ms.Jean-Paul's demand for M&Ms is
A) perfectly elastic.
B) unit elastic.
C) perfectly inelastic.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Jean-Paul's demand is unit elastic because he spends a constant amount (75 cents) regardless of the price, meaning the percentage change in quantity demanded is equal to the percentage change in price.

Jean-Paul Says That He Will Spend Exactly 75 Cents a Day