Suppose the Own-Price Elasticity of Demand for Good X Is

question 128

Multiple Choice

Suppose the own-price elasticity of demand for good X is -0.25, and that the quantity of good X increases by 5%.What would you expect to happen to the total expenditures on good X?

• A)increase.
• B)decrease.
• C)unchanged.
• D)neither increase, decrease nor remain unchanged.

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