Figure 6-4

-In Figure 6-4, total expenditure ____ as price falls from P = 12 to P = 10.
A)falls
B)stays constant
C)rises
D)rises by more than $12

Name: Figure 6-4 -In Figure 6-4, total expenditure ____ as price falls from P = 12 to P = 10. A)falls B)stays constant C)rises D)rises by more than $12
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Question

Figure 6-4
 
-In Figure 6-4, total expenditure ____ as price falls from P = 12 to P = 10.
A)falls 
B)stays constant 
C)rises 
D)rises by more than $12

Quizplus · Accepted Answer

Total expenditure rises as price falls from P = 12 to P = 10 because the increase in quantity demanded due to the lower price outweighs the decrease in price, leading to a higher overall expenditure.

Figure 6-4 -In Figure 6-4, Total Expenditure ____ as Price Falls from as Price