Question 23
EasyOriginal questionUnder the total expenditure method, if total spending stays the same when price changes, demand is
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
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 timeTypical
- 40 s
- Your timeYours
- —
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