If the Total Expenditure on Clothing Decreases When the Price

question 35

Multiple Choice

If the total expenditure on clothing decreases when the price of clothing falls,the price elasticity of demand is

• A)greater than one (demand is elastic).
• B)less than one (demand is inelastic).
• C)unity (demand is unit elastic).
• D)exactly zero.
• E)not determinable from the information given.

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