Which of the following statements accurately describe the relationship between price elasticity of demand and consumer spending? Select all that apply.

Price elasticity of demand measures how much the quantity demanded of a good changes when its price changes. If demand is elastic, a small price decrease can lead to a large increase in the quantity sold, which usually increases total consumer spending. For example, if a popular drink lowers its price from $2 to $1 and sales jump from 100 to 300 bottles, total spending increases from $200 to $300. On the other hand, if demand is inelastic, a price increase might not significantly reduce the quantity sold, which can still lead to higher total spending. Therefore, understanding price elasticity helps businesses predict how changes in price can affect their overall sales and revenue.