If the price of a good falls by 10% and the total amount consumers spend on the good remains the same then the good is
A)Elastic
B)Inelastic
C)Unit elastic
D)Perfectly inelastic

Question

Quizplus · Accepted Answer

When the price of a good falls by 10% and the total expenditure on the good remains the same, it indicates that the quantity demanded increased proportionally to offset the price decrease, which is characteristic of unit elastic demand.

If the Price of a Good Falls by 10% and the Total