If the Price Rises and the Total Amount Consumers Spend

question 51

Multiple Choice

If the price rises and the total amount consumers spend on the good falls, then demand must be

• A)elastic.
• B)inelastic.
• C)perfectly inelastic.
• D)perfectly elastic.

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Definitions:

Accounting Equation

A fundamental principle of accounting stating that assets equal liabilities plus owners' equity, representing the balance sheet's structure.

Assets

Resources owned or controlled by a business, expected to produce benefits or economic value in the future.

Liabilities

The financial obligations of a business entity, including debts and other amounts owed to creditors.

Equity

The remaining stake in a company's assets once liabilities are subtracted, signifying the equity held by shareholders.