If the Total Expenditure on Cars Increases When the Price

question 6

Multiple Choice

If the total expenditure on cars increases when the price of cars rises,the price elasticity of demand for cars is

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

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