When the price of rice was "low," consumers in Thailand spent a total of $8 billion annually on its consumption. When the price halved, consumer expenditures actually DECREASED to $6 billion annually. What does this indicate: the demand for rice is elastic or the demand for rice is inelastic?
When the price of rice was "low," consumers in Thailand spent a total of $8 billion annually on its consumption. When the price halved, consumer expenditures actually DECREASED to $6 billion annually. What does this indicate: the demand for rice is elastic or the demand for rice is inelastic?
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1SQP
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Question
When the price of rice was "low," consumers in Thailand spent a total of $8 billion
annually on its consumption. When the price halved, consumer expenditures actually
DECREASED to $6 billion annually.
What does this indicate: the demand for rice is
inelastic?
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