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If Demand Is Inelastic, an Increase in the Price of a Good

Question 89

Multiple Choice

If demand is inelastic, an increase in the price of a good will cause total expenditures on the good to


A) fall.
B) remain constant since the decrease in quantity sold is exactly offset by the price increase.
C) rise.
D) rise if it is a normal good and fall if it is an inferior good.

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