Price of a good falls from र 10 to र 8. As a result its demand rises from 80 units to 100 units. What can you say about price elasticity of demand by total expenditure method?
- Zigya
Price of a good falls from र 10 to र 8. As a result its demand rises from 80 units to 100 units. What can you say about price elasticity of demand by total expenditure method?
Price (र)
10
Demand (units)
80
100
Total expenditure (र)
800
800
It is a case of unit elastic demand because total expenditure before and after the change in price is the same, i.e., र 800.
77 Views
Advertisement
Theory Of Consumer Behaviour
Hope you found this question and answer to be good. Find many more questions on Theory Of Consumer Behaviour with answers for your assignments and practice.
Introductory Microeconomics
Browse through more topics from Introductory Microeconomics for questions and snapshot.
