contestada

Pablo's demand for pizza is inelastic. If the price of pizza decrease​s, we can predict that Pablo will

A. eat more pizza and spend more on pizza than he did before the price decrease.

B. eat less pizza and spend less on pizza than he did before the price decrease.

C. eat more pizza and spend less on pizza than he did before the price decrease.

D. eat less pizza and spend more on pizza than he did before the price decrease.

Respuesta :

Answer:

C. eat more pizza and spend less on pizza than he did before the price decrease.

Explanation:

The inelastic means that when the elasticity is less than one

Since the demand for pizza is inelastic and the price of pizza decreases that would result in an increase in the quantity demanded of pizza.

Though the price of pizza decreases, the Pablo spend less than before as the price and the quantity demanded has an inverse relationship.

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