When the price of a hot dog rises 10 percent, your expenditure on hot dogs increases. Hence, it is certain that
A) hot dogs are a normal good for you.
B) hot dogs are an inferior good for you.
C) your demand for hot dogs is elastic.
D) your demand for hot dogs is inelastic.

Question

Quizplus · Accepted Answer

If your expenditure on hot dogs increases when the price rises, it indicates that the quantity demanded does not decrease proportionally, suggesting that your demand for hot dogs is inelastic.

When the Price of a Hot Dog Rises 10 Percent