If the price rises and the total amount consumers spend on the good falls, 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 the good falls, it indicates that the demand for the good is sensitive to changes in price. This is a characteristic of elastic demand, where a small change in price causes a larger change in quantity demanded. Therefore, the correct choice is A) elastic.

If the Price Rises and the Total Amount Consumers Spend