Assume that the demand curve for a commodity is represented by the equation Q = 25 - 1.3P. Calculate the change in total spending for this commodity when price falls from $4.50 to $4.20
a. Total spending rises by $4.11.
b. Total spending declines by $4.11.
c. Total spending declines by $8.20.
d. Total spending rises by $8.20.
B
You might also like to view...
What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries
What will be an ideal response?
All of the following statements accurately describe pre-1763 British colonial policy except:
a. England discouraged western settlements in an effort to reduce conflicts between colonists and Native Americans. b. English taxes imposed on colonists were much lower than the taxes imposed on English residents. c. England passed certain laws designed to reduce colonial production of goods that duplicated popular English products. d. Colonial governors and the Privy Council rarely used their veto power to overturn colonial laws.