If the Price Falls and the Total Amount Consumers Spend

question 18

Multiple Choice

If the price falls 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:

Horizontal Axis

In a graphical representation, the x-axis, which typically shows the independent variable or the quantity of goods.

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.

Units Of Good

The individual items or quantities of a product that can be quantified, counted, and often sold individually.