Mr Burns has for some time enforced a rule prohibiting employees at his nuclear power plant from bringing their own donuts to work. Instead, they can only buy donuts at the company run snack bar. A few weeks ago he raised the price of donuts by 10% and to his surprise did not observe any change in revenues. This means:

Group of answer choices

The demand for donuts is inelastic

The demand for donuts is elastic

The demand for donuts is neither elastic nor inelastic.

Can't be determined from the information given.