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Commerce · Q319

Economics

Graduate and Post Graduate · Commerce · question 319

Q319

If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to

A.
Remain the same
B.
Increase
Answer
C.
Decrease
D.
Any of the above

Answer: Option B

Solution

Answer: Option B
Solution:
If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to Increase.