If the price of a good rises by 10% and the quantity purchased falls by 5%,then demand for the good is ________ and total spending on the good will ________.
A)elastic; increase
B)inelastic; increase
C)elastic; decrease
D)me and so inelastic; decrease

Question

Quizplus · Accepted Answer

The demand is inelastic because the percentage decrease in quantity demanded (5%) is less than the percentage increase in price (10%), leading to an increase in total spending.

If the Price of a Good Rises by 10% and the Quantity