When a product's price has an inverse relationship with total expenditure,then demand has a price elasticity of
A)zero.
B)less than one.
C)greater than one.
D)one.
E)inverse proportions.

Question

Quizplus · Accepted Answer

When demand has an inverse relationship with total expenditure, it means that as the price of the product decreases, the total amount spent on the product increases. This indicates that the product has an elastic demand, with a price elasticity of greater than one.

When a Product's Price Has an Inverse Relationship with Total