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.

Question

Quizplus · Accepted Answer

If the demand for a product is elastic, a rise in price will cause a proportionately larger decrease in quantity demanded, leading to a decrease in total spending on the good. This is because consumers are highly responsive to changes in price and are likely to switch to substitute goods or reduce their consumption of the product.

If the Demand for a Product Is Elastic,then a Rise