Final answer:
The individual's total expenditures on a good per-period are equal to the price of the good times the number of units purchased. As the price decreases from the choke price to zero, the quantity demanded increases and the total expenditures decrease.
Step-by-step explanation:
The total expenditures on a good per-period are equal to the price of the good times the number of units purchased.
In this case, the individual's demand function for the good is given by the linear equation Q = 20 - 0.5P, where Q is the quantity demanded and P is the price.
To find the total expenditures as the price decreases from the choke price to zero, we need to calculate the total expenditures for each price level.
Let's take an example where the choke price is $10. When the price is $10, the quantity demanded is Q = 20 - 0.5(10) = 20 - 5 = 15 units. Therefore, the total expenditures at this price level would be $10 * 15 = $150.
As the price decreases, the quantity demanded increases. For example, if the price decreases to $5, the quantity demanded would be Q = 20 - 0.5(5) = 20 - 2.5 = 17.5 units. Therefore, the total expenditures at this price level would be $5 * 17.5 = $87.5.
In general, as the price decreases from the choke price to zero, the quantity demanded will increase, and therefore the total expenditures will decrease.