Question

Suppose consumers spent $42 million on Christmas trees last year when the average tree cost $30 and this year spend $42 million when the average tree costs $25. Assuming nothing else changed, this data suggests that
a. consumers bought the same number of Christmas trees this year as last year
b. the price of Christmas trees stayed the same
c. total revenues to tree producers rose this year
d. the demand for trees is unit elastic
e. the demand for trees is inelastic

Answer 1

D. unit elastic