If demand is inelastic, an increase in the price of a good will cause total expenditures on the good to
a. fall.
b. remain constant since the decrease in quantity sold is exactly offset by the price increase.
c. rise.
d. rise if it is a normal good and fall if it is an inferior good.
C
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Refer to Figure 29-1. Currency speculators believe that the value of the euro will decrease relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would increase, demand would increase and the economy moves from D to A to B. B) Supply would decrease, demand would increase and the economy moves from A to D to C. C) Supply would increase, demand would decrease and the economy moves from C to B to A. D) Supply would decrease, demand would decrease and the economy moves from B to C to D.
A tax on buyers decreases demand
a. True b. False Indicate whether the statement is true or false