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If the Total Expenditure on Cars Increases When the Price

Question 6

Multiple Choice

If the total expenditure on cars increases when the price of cars rises,the price elasticity of demand for cars is


A) greater than one (demand is elastic) .
B) less than one (demand is inelastic) .
C) equal to one (demand is unit elastic) .
D) exactly zero.
E) not determinable from the information given.

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