When a good is price inelastic, consumer expenditures on the good ...

[Tazate]

When a good is price inelastic, consumer expenditures on the good
 
  A) increase when price increases.
  B) decrease when price increases.
  C) do not change when price increases.
  D) are not related to price elasticity of demand.

Question 2

For automobile demand in the U.S., the income response tends to be larger in the:
 
  A) short run.
  B) long run.
  C) The income response is the same in the long run and the short run.
  D) We do not have enough information to answer this question.

[xiazhe]

Answer to Question 1

A

Answer to Question 2

A