If the price rises and the total amount consumers spend on the good rises, then demand must be
A)elastic.
B)inelastic.
C)perfectly inelastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

When the price of a good rises and the total amount consumers spend on it also increases, it indicates that the demand for the good is inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price, leading consumers to spend more despite the higher price.

If the Price Rises and the Total Amount Consumers Spend