Final answer:
The expenditure on a die good with a 9% price increase and a price elasticity of demand of -0.7 would increase, as the small reduction in quantity demanded does not offset the impact of the higher price.
Step-by-step explanation:
When the price of a die good increases by 9% and the price elasticity of demand (ED) is -0.7, the expenditure on the good would increase. The negative value of ED indicates that the demand for the good is inelastic, which means that the percentage decrease in quantity demanded will be less than the percentage increase in price. In this case, with a price increase of 9%, the quantity demanded will decrease by 6.3% (calculated as 9% * 0.7). Since the decrease in quantity demanded is smaller relative to the increase in price, overall expenditure, which is the product of price and quantity, will rise.