Figure 6-4
-Based on Figure 6-4, it can be determined that total expenditure ____ as price falls from P = 6 to P = 4.
A)falls
B)remains constant
C)rises
D)rises by more than $12

Question

Figure 6-4 
-Based on Figure 6-4, it can be determined that total expenditure ____ as price falls from P = 6 to P = 4.
A)falls 
B)remains constant 
C)rises 
D)rises by more than $12

Quizplus · Accepted Answer

As price falls from P = 6 to P = 4, the quantity demanded increases from 2 to 4. Therefore, total expenditure will decrease from $12 to $16, indicating that total expenditure falls as price falls.

Figure 6-4 -Based on Figure 6-4, It Can Be Determined That Total