If the price falls 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 falls and the total expenditure on that good increases, it indicates that the quantity demanded increased by a proportion greater than the decrease in price, which is a characteristic of elastic demand. Elastic demand means consumers are highly responsive to price changes.

If the Price Falls and the Total Amount Consumers Spend