If the demand for a product is elastic, then a rise in price will
a. cause total spending on the good to increase.
b. cause total spending on the good to decrease.
c. keep total spending the same, but reduce the quantity demanded.
d. keep total spending the same, but increase the quantity demanded.
b
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Which of the following best illustrates the medium of exchange function of money?
A) The price of a new car is $25,000. B) A penny saved is a penny earned. C) A person owes $10,000 on his or her credit card. D) You pay $3 to purchase a bag of apples.
Income security expenditures include
A. Medicare, Social Security, and unemployment compensation. B. Social Security and disability benefits, but not Medicare. C. unemployment compensation, disability benefits, and Medicare, but not Social Security. D. transfer payments to the disadvantaged, but not transfer payments to the elderly.
When elasticity is 0.1, demand is
A. elastic. B. inelastic. C. unit elastic. D. undefined.
A balance of trade surplus exists when
A. net exports are negative. B. imports exceed exports. C. net exports are positive. D. All of the choices are true.