If a firms marketing executive has estimated the price elasticity of demand for the good the firm sells at -1.5,,

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    the executive understands that demand is price elastic and an increase in price will cause total consumer expenditures on the good to fall.
     the executive understands that demand is price elastic and an increase in price will cause total consumer expenditures on the good to rise.
     the executive understands that demand is price inelastic and an increase in price will cause total consumer expenditures on the good to rise.
     the executive understands that demand is price inelastic and an increase in price will cause total consumer expenditures on the good to fall.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the executive understands that demand is price elastic and an increase in price will cause total consumer expenditures on the good to fall.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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