FIGURE 4-2
-Refer to Figure 4-2.As price decreases,total expenditure remains constant in diagram(s)
A)1.
B)2.
C)3.
D)4.
E)2 and 4.

Name: FIGURE 4-2 -Refer to Figure 4-2.As price decreases,total expenditure remains constant in diagram(s) A)1. B)2. C)3. D)4. E)2 and 4.
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Question

FIGURE 4-2
-Refer to Figure 4-2.As price decreases,total expenditure remains constant in diagram(s)
A)1. 
B)2. 
C)3. 
D)4. 
E)2 and 4.

Quizplus · Accepted Answer

In diagram 3, the demand curve is unit elastic, meaning that the percentage change in quantity demanded is equal to the percentage change in price, resulting in constant total expenditure.

FIGURE 4-2 -Refer to Figure 4-2.As Price Decreases,total Expenditure Remains Constant in Constant