If your demand for petrol is inelastic, when the price of petrol falls, which of the following occurs?
A) Your demand curve for petrol will shift rightward.
B) Your total expenditure on petrol will increase.
C) Your total expenditure on petrol will decrease.
D) Your demand curve for petrol will shift leftward.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price leads to a decrease in total expenditure because the percentage change in quantity demanded is less than the percentage change in price.

If Your Demand for Petrol Is Inelastic, When the Price