If a price decrease results in your expenditure on a good decreasing, your demand must be
A) inelastic.
B) unit.
C) elastic.
D) linear.

Name: If a price decrease results in your expenditure on a good decreasing, your demand must be A) inelastic. B) unit. C) elastic. D) linear.
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Question

Quizplus · Accepted Answer

If a price decrease leads to a decrease in expenditure, it indicates that the percentage decrease in price is greater than the percentage increase in quantity demanded, which is characteristic of inelastic demand.

If a Price Decrease Results in Your Expenditure on a Good