If the price of a good drops from the choke price to zero, what happens to total expenditures initially?

When the price of a good decreases from the choke price (the highest price at which no units are demanded) to zero, total expenditures increase initially due to the vast increase in quantity demanded resulting from the lower price. The choke price represents the point where consumers are no longer willing to purchase the good, and as the price drops, more consumers enter the market, driven by the lower cost.

At the choke price, total expenditures are effectively at zero because no quantity is sold. As the price falls, total revenue, which is calculated as price multiplied by quantity sold, starts to rise quickly as long as the quantity demanded increases. The drop to zero means consumers are purchasing at an increasing rate as the price becomes lower, leading to an increase in overall spending on the good until the price reaches a level where quantity demanded may flatten out or converge to a new equilibrium. This early phase of the price drop results in a surge in total expenditures as more units are bought at lower prices.