If the price rises 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 rises and the total expenditure remains the same, it indicates unit elasticity. This means the percentage change in quantity demanded is exactly equal to the percentage change in price.

If the Price Rises and the Total Amount Consumers Spend