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Suppose the Own-Price Elasticity of Demand for Good X Is

Question 73

Multiple Choice

Suppose the own-price elasticity of demand for good X is -0.5, and that the price of good X increases by 10%.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.

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