Final answer:
Tina's bakery has relatively inelastic demand, meaning changes in price have a minimal effect on the quantity demanded, resulting in a constant revenue.
Step-by-step explanation:
The student's question relates to the concept of price elasticity of demand, which describes how the quantity demanded of a good changes in response to price changes. In Tina's case, her bakery's daily revenue remains constant at $1,000 regardless of the season. This indicates that the demand for Tina's pastries is relatively inelastic. This is because even when prices change, the quantity of pastries sold does not change significantly, leading to stable revenue.
An inelastic demand implies that a percentage increase in price will lead to a smaller percentage decrease in quantity demanded, thus, total revenue increases or remains unchanged. Conversely, with perfectly inelastic demand, the quantity demanded remains unchanged regardless of any price change, which is not the case here as Tina's revenue does not increase, it just doesn't fluctuate. Therefore, Tina's bakery exhibits relatively inelastic demand rather than perfectly inelastic demand or any other elasticity.