If the demand for videotapes tends to be elastic, then a decrease in videotape prices means that people spend more on video tapes than before.

Name: If the demand for videotapes tends to be elastic, then a decrease in videotape prices means that people spend more on video tapes than before.
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Question

Quizplus · Accepted Answer

When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, which can result in an increase in total expenditure on the product.

If the Demand for Videotapes Tends to Be Elastic, Then