Sandra Consumes Two Goods: Tea and Coffee

Sandra consumes two goods: tea and coffee.Her demand for tea is inelastic,while her demand for coffee is elastic.If there is an increase in the price of both tea and coffee,________.

A) Sandra's expenditure on both tea and coffee will increase
B) Sandra's expenditure on both tea and coffee will decrease
C) Sandra's expenditure on tea will increase and her expenditure on coffee will decrease
D) Sandra's expenditure on coffee will increase and her expenditure on tea will decrease

Correct Answer:

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