The Consumer Price Index is a fixed-weight index.

If demand is price inelastic and the price is lowered, which of the following occurs?

A) The quantity sold decreases. B) The total expenditure increases and the total revenue decreases. C) The total revenue of the firms selling the product is unchanged. D) The total revenue of the firms selling the product decreases. E) The total expenditure decreases and the total revenue increases.

If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal

a. True b. False Indicate whether the statement is true or false