1
answer
0
watching
114
views
28 Sep 2019
If the percentage change in quantity demanded is equal to the percentage change in price for small changes in price and quantity near the point on a linear demand function graph corresponding to the price of $15 per unit at which the quantity demanded is 1,000 units, what is the effect on total consumer expenditure on the good if there is a relatively large increase in price to above $15?
a) Total consumer spending on the good will increase
b) Total consumer spending on the good will decrease
c) Total consumer expenditure will be unchanged.
d) One cannot tell without knowing more information
If the percentage change in quantity demanded is equal to the percentage change in price for small changes in price and quantity near the point on a linear demand function graph corresponding to the price of $15 per unit at which the quantity demanded is 1,000 units, what is the effect on total consumer expenditure on the good if there is a relatively large increase in price to above $15?
a) Total consumer spending on the good will increase
b) Total consumer spending on the good will decrease
c) Total consumer expenditure will be unchanged.
d) One cannot tell without knowing more information
Retselisitsoe PokothoaneLv10
28 Sep 2019
