Microeconomics

MCQ - 11-4021

Question:

If the price were to rise from 0B to 0C,

dollars spent on this good would increase if demand for the good were price elastic.
dollars spent on this good would decrease if demand for the good were price inelastic.
dollars spent on this good would increase if demand for the good were price inelastic.
dollars spent on this good would decrease if demand for the good were price inelastic.
dollars spent on this good would decrease if demand for the good were unitary price elastic.

Correct Answer: C

Explanation:

If E d < 1, a given % increase in the price outweighs the % decrease in quantity demanded, thus increasing total dollars spent on the good.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: If the price were to rise from 0B to 0C, , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 11-4021.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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