Suppose that when the price of a good rises by 8%, the quantity demanded that good falls by 13%. What is the approximate change in total expenditure (or total revenue)? Express your answer as a percentage. I got -6% but it is incorrect
Suppose that when the price of a good rises by 8%, the quantity demanded that good falls by 13%. What is the approximate change in total expenditure (or total revenue)? Express your answer as a percentage. I got -6% but it is incorrect
Chapter5: Income And Substitution Effects
Section: Chapter Questions
Problem 5.8P
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Suppose that when the price of a good rises by 8%, the quantity demanded that good falls by 13%. What is the approximate change in total expenditure (or total revenue)? Express your answer as a percentage.
I got -6% but it is incorrect.
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