Suppose the price elasticityof demand for bread is 0.20. Ifthe price of bread fa

Question

Suppose the price elasticityof demand for bread is 0.20. Ifthe price of bread falls by 10 percent, the quantity demanded willincrease by: A.2 percent and total expenditures on bread will rise. B.2 percent and total expenditures on bread will fall. C.20 percent and total expenditures on bread will fall. D.20 percent and total expenditures on bread will rise. Suppose the price elasticityof demand for bread is 0.20. Ifthe price of bread falls by 10 percent, the quantity demanded willincrease by: A.2 percent and total expenditures on bread will rise. B.2 percent and total expenditures on bread will fall. C.20 percent and total expenditures on bread will fall. D.20 percent and total expenditures on bread will rise. B.2 percent and total expenditures on bread will fall. C.20 percent and total expenditures on bread will fall. D.20 percent and total expenditures on bread will rise. C.20 percent and total expenditures on bread will fall. D.20 percent and total expenditures on bread will rise. D.20 percent and total expenditures on bread will rise.

Explanation / Answer

B.2 percent and total expenditures on bread will fall.

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