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Subject - Economics:

Microeconomics

MCQ - 127-4137

Question:

If the price were to fall from 0C to 0A, which of the following would be true?

  1. Dollars spent on this good would increase if demand for the good were price inelastic.
  2. Dollars spent on this good would decrease if demand for the good were price elastic.
  3. Dollars spent on this good would increase if demand for the good were price elastic.
  4. Dollars spent on this good would decrease if demand for the good were price elastic.
  5. Dollars spent on this good would decrease if demand for the good were unitary price elastic.

Correct Answer: C

Explanation:

When the price falls and quantity demanded rises, consumer spending on the good (P × Q ) can change in two directions. If E d > 0, a percent decrease in price increases quantity demanded by a greater percent, increasing spending 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 fall from 0C to 0A, which of the following would be true? , 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. 127-4137.

How to Answer

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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