If your demand for gasoline is inelastic, when the price of gasoline falls, which of the following occurs?
A) Your demand curve for gasoline will shift leftward.
B) Your demand curve for gasoline will shift rightward.
C) Your total expenditure on gasoline will increase.
D) Your total expenditure on gasoline will decrease.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price leads to a decrease in total expenditure because the percentage change in quantity demanded is less than the percentage change in price.

If Your Demand for Gasoline Is Inelastic, When the Price