Suppose the current level of output of some good is 100 units. If market demand is inelastic at that quantity, total expenditure on this product would be higher if output was
A) kept constant.
B) maximized.
C) less than 100 units.
D) minimized.
E) greater than 100 units.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in quantity leads to a proportionally larger increase in price, thus increasing total expenditure.

Suppose the Current Level of Output of Some Good Is