{"id":51690,"date":"2024-04-15T23:28:26","date_gmt":"2024-04-15T23:28:26","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51690"},"modified":"2024-04-15T23:28:26","modified_gmt":"2024-04-15T23:28:26","slug":"if-the-demand-for-a-good-is-inelastic-an-increase-in-the-price-of-the-good-will-cause-the-total-expenditure-of-the-consumers-of-the-good-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-demand-for-a-good-is-inelastic-an-increase-in-the-price-of-the-good-will-cause-the-total-expenditure-of-the-consumers-of-the-good-to\/","title":{"rendered":"If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Remain the same&#8221; option2=&#8221;Increase&#8221; option3=&#8221;Decrease&#8221; option4=&#8221;Any of the above&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is <strong>B. Increase<\/strong>.<\/p>\n<p>Inelastic demand is a situation in which consumers are relatively unresponsive to changes in price. This means that if the price of a good increases, consumers will not buy significantly less of it. As a result, the total expenditure of consumers on the good will increase.<\/p>\n<p>For example, if the price of gasoline increases by 10%, consumers may not reduce their consumption of gasoline by much. This is because they may need to drive to work or school, and they may not have other options for transportation. As a result, the total amount of money that consumers spend on gasoline will increase, even though the price has increased.<\/p>\n<p>On the other hand, if the demand for a good is elastic, consumers are relatively responsive to changes in price. This means that if the price of a good increases, consumers will buy significantly less of it. As a result, the total expenditure of consumers on the good will decrease.<\/p>\n<p>For example, if the price of movie tickets increases by 10%, consumers may reduce their consumption of movie tickets by a significant amount. This is because they may be able to find other forms of entertainment that are less expensive. As a result, the total amount of money that consumers spend on movie tickets will decrease, even though the price has increased.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Remain the same&#8221; option2=&#8221;Increase&#8221; option3=&#8221;Decrease&#8221; option4=&#8221;Any of the above&#8221; correct=&#8221;option2&#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-51690","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 the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to<\/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-the-demand-for-a-good-is-inelastic-an-increase-in-the-price-of-the-good-will-cause-the-total-expenditure-of-the-consumers-of-the-good-to\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Remain the same&#8221; 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