Jerome says that he will spend exactly $25 each month on new apps for his mobile device, regardless of the price of apps. Jerome's demand for apps is
A) perfectly elastic.
B) unit elastic.
C) perfectly inelastic.
D) somewhat inelastic, but not perfectly inelastid.

Question

Quizplus · Accepted Answer

Jerome's demand is unit elastic because he spends a constant amount ($25) regardless of the price, meaning the percentage change in quantity demanded is equal to the percentage change in price.

Jerome Says That He Will Spend Exactly $25 Each Month