4. Critical analysis Q9 True or False: A 10% reduction in price that leads to a 16% increase in the amount purchased indicates a price elasticity of more than 1 (in absolute value). True False True or False: A 10% reduction in price that leads to a 2% decrease in total expenditures (or total revenue) indicates a price elasticity of more than 1 (in absolute value). True False If the percentage change in price is more than the resultant percentage change in quantity demanded, demand isinelastic .