The president of a major nickel-producing company says that an increase in the price of nickel would have no effect on the total amount spent on nickel.If this is true,the price elasticity of demand for nickel is
A)more than one.
B)exactly one.
C)less than zero.
D)infinitely elastic.
E)not calculable from the information given.

Question

Quizplus · Accepted Answer

If the total amount spent on nickel remains unchanged when the price changes, the price elasticity of demand is exactly one, indicating unitary elasticity.

The President of a Major Nickel-Producing Company Says That an Increase