Q36) If the price of a commodity raised by 12% and Ed is (-) 0.63, the expenditure made on the commodity by a consumer will _____________

Correct

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Solution:
The price elasticity of demand (Ed) is negative, which means that as the price of the commodity increases, the quantity demanded will decrease. This is because consumers tend to be less willing to buy a commodity as its price increases.

Answer given in module is option (b)
Correct option is (a)

C A foundation Economics Paper4 Part I Questions for practice