If an Increase in Price Causes Total Expenditure on a Product

question 104

Multiple Choice

If an increase in price causes total expenditure on a product to decrease, then the price elasticity of demand is:

• A)​inelastic.
• B)​elastic.
• C)​unit elastic.
• D)​zero.

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Definitions:

Acidity

A measure of the concentration of hydrogen ions in a solution, indicating how acidic or alkaline the solution is.

Hydrogen Ions

Positively charged ions (H+) that are formed when hydrogen atoms lose their electrons; a high concentration of hydrogen ions indicates acidity.

Protons

Positively charged subatomic particles found in the nucleus of an atom, determining the element's atomic number.

Acidic

Having a pH less than 7, indicating a higher concentration of hydrogen ions in a solution, which gives it acidic properties.