If the price of apples increases, total expenditures on apples will decline if
A) there are few substitutes for apples.
B) the supply of apples is inelastic.
C) the demand for apples is elastic.
D) apples are a normal good.

Question

Quizplus · Accepted Answer

If the demand for apples is elastic, then as the price of apples increases, consumers will reduce their quantity demanded by a greater amount. This will lead to a decrease in total expenditures on apples.

If the Price of Apples Increases, Total Expenditures on Apples