John spends exactly the same dollar amount on candy bars each week,regardless of their price.John's demand curve for candy bars is _____
A)downward-sloping.
B)backward-bending.
C)perfectly inelastic.
D)perfectly elastic.
E)unit elastic.

Question

Quizplus · Accepted Answer

John's demand curve is unit elastic because he spends the same amount of money on candy bars each week, regardless of their price. This means the percentage change in quantity demanded equals the percentage change in price, which is the definition of unit elasticity.

John Spends Exactly the Same Dollar Amount on Candy Bars