If the price of good X decreases and nothing else in the economic environment changes, what...

If the price of good X decreases and nothing else in the economic environment changes, what will most likely happen to the quantity demanded? (Multiple Choice)
1. The most likely result is that the quantity demanded of X will decrease.
2. If the demand function is Q = 25P-1 consumer expenditure and quantity demanded will be unchanged.
3. In the rare circumstance that the good is a Giffin good, the quantity demanded will increase.
4. Total consumer expenditure on good X will increase.0
5. None of the above.

Expert Solution

Rahul Sunny answered 7 months ago

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