{"id":46270,"date":"2024-04-15T22:09:56","date_gmt":"2024-04-15T22:09:56","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46270"},"modified":"2024-04-15T22:09:56","modified_gmt":"2024-04-15T22:09:56","slug":"if-we-assume-that-price-decreases-and-total-expenditures-increase-we-may-conclude-that-elasticity-of-demand-is","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-we-assume-that-price-decreases-and-total-expenditures-increase-we-may-conclude-that-elasticity-of-demand-is\/","title":{"rendered":"If we assume that price decreases and total expenditures increase we may conclude that elasticity of demand is"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;greater than one&#8221; option2=&#8221;equal to one&#8221; option3=&#8221;less than one but more than zero&#8221; option4=&#8221;equal to zero&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. greater than one.<\/p>\n<p>If price decreases and total expenditures increase, then demand is elastic. Elastic demand means that consumers are very responsive to changes in price. When the price of a good decreases, consumers buy more of it. This causes total expenditures to increase.<\/p>\n<p>If price decreases and total expenditures remain the same, then demand is unit elastic. Unit elastic demand means that consumers are not very responsive to changes in price. When the price of a good decreases, consumers buy more of it, but not enough to offset the decrease in price. This causes total expenditures to remain the same.<\/p>\n<p>If price decreases and total expenditures decrease, then demand is inelastic. Inelastic demand means that consumers are not very responsive to changes in price. When the price of a good decreases, consumers do not buy much more of it. This causes total expenditures to decrease.<\/p>\n<p>In conclusion, if price decreases and total expenditures increase, then demand is elastic.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;greater than one&#8221; option2=&#8221;equal to one&#8221; option3=&#8221;less than one but more than zero&#8221; option4=&#8221;equal to zero&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-46270","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If we assume that price decreases and total expenditures increase we may conclude that elasticity of demand is<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-we-assume-that-price-decreases-and-total-expenditures-increase-we-may-conclude-that-elasticity-of-demand-is\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If we assume that price decreases and total expenditures increase we may conclude that elasticity of demand is\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;greater than one&#8221; 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