Question

If the demand for umbrellas is price inelastic,

a. changes in price do not affect the number of umbrellas demanded.
b. if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease.
c. the percentage change in price is less than the percentage change in quantity demanded.
d. the percentage change in quantity demanded is greater than the percentage change in price.
e. none of the above

Answer 1

b. if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease.

Step-by-step explanation:

• If the demand price is elastic then the umbrella that is sold will be a result of the decrease in the result and the there the expenditure of the consumer will also decrease and this will also affect the number of the umbrella demand.