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Carter Has Budgeted $40 Per Month for Candy Bars

Question 64

Multiple Choice

Carter has budgeted $40 per month for candy bars.No matter how the price of candy bars changes,he spends exactly $40 per month.Carter's price elasticity of demand for candy bars must


A) Equal zero.
B) Be unitary.
C) Be very inelastic since the amount he spends is not responsive to a price change.

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