If demand is elastic, a rise in price will decrease total expenditure.

Name: If demand is elastic, a rise in price will decrease total expenditure.
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Question

Quizplus · Accepted Answer

When demand is elastic, a rise in price will lead to a proportionately larger decrease in quantity demanded, resulting in a decrease in total expenditure. This is because the increase in price will make the product relatively more expensive, causing consumers to switch to substitutes or reduce their overall consumption.

If Demand Is Elastic, a Rise in Price Will Decrease