Which of the Following Statements About Demand Elasticity Is Correct

question 79

Multiple Choice

Which of the following statements about demand elasticity is correct?

• A)If demand is price-inelastic,an increase in price will reduce total expenditures.
• B)If demand is price-elastic,an increase in price will increase total expenditures.
• C)If demand is price-inelastic,an increase in price will increase total expenditures.
• D)If demand is price-elastic,an increase in price will leave total expenditure unchanged.

---

Definitions:

Obligation

A legal or moral duty to do something or pay something, often within the context of contracts and agreements.

Compounded Semi-Annually

Involves calculating the addition of interest to the principal sum of a loan or deposit on a half-yearly basis, incrementally increasing the amount earned or owed.

Payment Stream

A series of payments made over a period of time, often in the context of loans or annuities.

Production Units

Quantities of output, such as goods or services, produced within a specified timeframe.