Total expenditure by a buyer is equal to the
A)slope at any point along the demand curve.
B)price times quantity demanded at any point along the demand curve.
C)elasticity times price at any point along the demand curve.
D)elasticity times quantity demanded at any point along the demand curve.

Question

Quizplus · Accepted Answer

The total expenditure by a buyer is calculated by multiplying the price by the quantity demanded at any point along the demand curve. Therefore, the correct choice is B. The slope at any point along the demand curve does not represent the total expenditure, so option A is incorrect. The elasticity times price or quantity demanded at any point along the demand curve do not represent total expenditure, so options C and D are also incorrect.

Total Expenditure by a Buyer Is Equal to the