Scenario 4.4: the Demand Curve for the New Computer Game, Rock and Rock

Multiple Choice

Scenario 4.4:
The demand curve for the new computer game, Rock and Roll Trivia, is given as follows:
Q = 200 - 5P - .1Pc - .5Pd + .2A - I
where P is the price of the game
Pc is the price of a computer
Pd is the price of a diskette
A is the level of advertising
Q is the level of income
-See the information in Scenario 4.4. Suppose that the price should increase slightly from $10, how will this affect the total expenditure of consumers on the game?

A) Total expenditures will increase.
B) Total expenditures will not change.
C) Total expenditures will decrease by a larger percentage than the price increase.
D) Total expenditures will decrease by a smaller percentage than the price increase.
E) either C or D could be true.