question archive Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of each container
Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of each container
Subject:EconomicsPrice:2.88 Bought3
Each month Jacquelyn spends exactly $50 on ice cream regardless of the price of each container. Jacquelyn's price elasticity of demand for ice cream is:
A. greater than 1
B. 0
C. 1
D. less than 1 but greater than 0
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Option C. 1 is correct.
The demand for Jacquelyn for ice-cream remains the same and does not depend upon the price of the ice-cream. Therefore, it is inelastic demand having a value of one.
