No matter what the price of orange juice is , Jill spends $20 a week on orange juice. We can conclude that the absolute value of the price elasticity of demand for orange juice for Jill is
A) greater than 1.
B) equal to 1.
C) less than 1.
D) equal to 0.

Question

Quizplus · Accepted Answer

The absolute value of the price elasticity of demand for Jill is equal to 1, indicating unit elasticity. This means her expenditure on orange juice remains constant regardless of the price change, which is characteristic of unit elastic demand.

No Matter What the Price of Orange Juice Is