Suppose the Own Price Elasticity of Demand for Good X

question 37

Multiple Choice

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

• A) Increase
• B) Decrease
• C) Remain unchanged
• D) Neither increase, decrease nor remain unchanged

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