If demand is elastic,a decrease in quantity will cause the total spending (P * Q)to
A) rise.
B) fall.
C) remain unchanged.
D) change in a way that cannot be determined.

Question

Quizplus · Accepted Answer

When demand is elastic, any change in quantity will have a more than proportional effect on the price. This means that if the quantity decreases, the total spending will also decrease, resulting in a fall.

If Demand Is Elastic,a Decrease in Quantity Will Cause the Total