Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

Under what conditions must consumers’ total spending on a good rise when its price rises?

  • Aif demand for the good is income-elastic
  • Bif demand for the good is price-inelastic
  • Cif the price of a complementary good also increases
  • Dif the price of substitute goods also increases

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