Suppose That You Allow Yourself $50 Per Month to Spend

Multiple Choice

Suppose that you allow yourself $50 per month to spend on compact disks.You spend exactly this much every month regardless of the price of compact disks.Therefore, your demand for CDs

A) is elastic
B) is inelastic
C) is unit elastic
D) cannot be characterized unless we know the price of a disk
E) cannot be characterized unless we know the price and quantity of compact disks purchased