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Commerce · Q1311

Economics

Graduate and Post Graduate · Commerce · question 1311

Q1311

If the demand for a good is price elastic, a fall in its price will lead to: (i) A rise in sales (ii) A fall in sales (iii) A rise in total expenditure on the good (iv) A fall in total expenditure on the good

A.
(i) and (iii) only
Answer
B.
(i) and (vi) only
C.
(ii) and (iii) only
D.
(ii) and (iv) only

Answer: Option A

Solution

Answer: Option A
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