If a Price Decrease Results in Your Expenditure on a Good

question 196

Multiple Choice

If a price decrease results in your expenditure on a good decreasing, your demand must be

• A) inelastic.
• B) unit.
• C) elastic.
• D) linear.

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Definitions:

Asset Accounts

Accounts on a company's balance sheet that represent the resources owned by the company which have economic value and can provide future benefits.

Debits

Entries on the left side of an accounting ledger, representing increases in assets or expenses and decreases in liabilities or equity.

Equipment

Tangible property used in the operations of a business, often contributing to the production of goods and services, and generally considered a long-term asset.

Cash

Currency and coins, along with bank balances, checks, and money orders, that are readily available for use.