Suppose the price elasticity of demand for bread is 2. If the price of bread falls by 8 percent, the quantity demanded will increase by

Multiple Choice

• 16 percent and total expenditures on bread will fall.
• 16 percent and total expenditures on bread will rise.
• 4 percent and total expenditures on bread will fall.
• 4 percent and total expenditures on bread will rise.