Which are TRUE and which are FALSE ? PLEASE EXPLAIN the reasoning
A 10 percent reduction in price that leads to a 2 percent increase in total expenditures indicates a price elasticity of demand greater than 1.
A 10 percent reduction in price that leads to a 5 percent increase in the amount purchased indicates a price elasticy of more than 1
If the percentage change in price is less than the resultant percentage change in quantity demanded, demand is inelastic.