What you expect to happen to total expenditures on good
Question:
Suppose the own-price elasticity of demand for good X is -0.5, and that the price of good X increases by 10%. What would you expect to happen to the total expenditures on good X?
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Calculate the point price elasticity of demand when price is $100.
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What would you expect to happen to the total expenditures on good X?
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