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Price Elasticity of Demand · Question 23 of 62

Question 23

EasyOriginal question

Under the total expenditure method, if total spending stays the same when price changes, demand is

Options for question 23

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Unchanged spending means quantity changed by exactly the same percentage as price, in the opposite direction: eₚ = 1.

Concept
Total expenditure method: unitary demand
Typical time
40 s
Your time
—
The rule this testsThe total expenditure method
Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.