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

Question

Quizplus · Accepted Answer

When the price falls and the total expenditure on the good remains the same, it indicates unit elasticity. This means the percentage change in quantity demanded is exactly equal to the percentage change in price, leading to no change in total expenditure.

If the Price Falls and the Total Amount Consumers Spend