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Suppose the Own Price Elasticity of Demand for Good X

Question 114

Multiple Choice

Suppose the own price elasticity of demand for good X is −5,and the quantity of good X decreases by 5 percent.What would you expect to happen to the total expenditures on good X?


A) Increase
B) Decrease
C) Unchanged
D) Neither increase, decrease, nor remain unchanged

Correct Answer:

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