When US demand for imports is price elastic,a(n)___________ in price leads to a ___________ proportionate increase in the quantity demanded so that expenditures on the imports increase.
A)increase; smaller
B)increase; larger
C)decrease; smaller
D)decrease; larger

Question

Quizplus · Accepted Answer

When demand is price elastic, a decrease in price leads to a larger proportionate increase in the quantity demanded, which increases total expenditures on the imports.

When US Demand for Imports Is Price Elastic,a(n)___________ in Price