If the price of a good rises by 10% and the quantity purchased falls by 15%,then demand for the good is ________ and total spending on the good will ________.
A)elastic; increase
B)inelastic; increase
C)elastic; decrease
D)me and so inelastic; decrease

Question

Quizplus · Accepted Answer

The fact that the quantity purchased falls by a greater percentage than the price increase indicates that the demand for the good is relatively elastic. When demand is elastic, a price increase will result in a decrease in total spending on the good.

If the Price of a Good Rises by 10% and the Quantity