Suppose a Fast-Food Chain Determines That the Price Elasticity of Demand

Multiple Choice

Suppose a fast-food chain determines that the price elasticity of demand for its hamburgers is 0.75,and the price of the hamburger is currently $4.00.What will be the effect on quantity demanded and total expenditure on this chain's hamburgers if the price is increased to $6.00?

A) Quantity demanded will fall by 30%,and total expenditure will increase.
B) Quantity demanded will fall by 40%,and total expenditure will increase.
C) Quantity demanded will fall by 75%,and total expenditure will increase.
D) Quantity demanded will fall by 0.3%,and total expenditure will decrease.
E) Quantity demanded will fall by 0.4%,and total expenditure will decrease.