If the price of grapes increases, total expenditures on grapes will decline if
A) there are few substitutes for grapes.
B) the supply of grapes is inelastic.
C) the demand for grapes is elastic.
D) grapes are a normal good.

Question

Quizplus · Accepted Answer

If the demand for grapes is elastic, an increase in price will lead to a proportionally larger decrease in quantity demanded, causing total expenditures to decline.

If the Price of Grapes Increases, Total Expenditures on Grapes