If the price of gloves increases, total expenditures on gloves will decline if
A) the demand for gloves is inelastic.
B) the demand for gloves is elastic.
C) the quantity of gloves purchased is unresponsive to changes in price.
D) there are few good substitutes for gloves.

Question

Quizplus · Accepted Answer

If the demand for gloves is elastic, an increase in price will lead to a proportionally larger decrease in quantity demanded, resulting in a decline in total expenditures.

If the Price of Gloves Increases, Total Expenditures on Gloves