As the price of mobile phones fell during the last decade, consumers' total expenditures on mobile phones increased. If the demand curve for mobile phones did not shift, this fact means that the demand for mobile phones
A) is elastic.
B) must have shifted leftward.
C) is inelastic.
D) must be upward- sloping.

Question

Quizplus · Accepted Answer

The increase in total expenditures despite a fall in prices indicates that the quantity demanded increased more than proportionally to the price decrease, which is a characteristic of elastic demand.

As the Price of Mobile Phones Fell During the Last