'If a product price increases, a family's spending on the product has to increase.' Defend or refute.
The answer depends upon two factors namely (i) Elasticity of demand, and (ii) Availability of substitute. If demand for the product whose price has increased is inelastic and the product has no substitute, a family's spending will increase. On the other hand, if demand is elastic or the product's substitutes are available, a family's spending need not increase.
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