A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2016 · Q71 Mark
In which situation is the demand for a product said to be price elastic?
Afall in price increases expenditure on the product.
Bfall in price increases quantity demanded.
Crise in price increases expenditure on the product.
Drise in price reduces quantity demanded.
✓ Correct answer
A: fall in price increases expenditure on the product.
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