send mail to support@abhimanu.com mentioning your email id and mobileno registered with us! if details not recieved
Resend Opt after 60 Sec.
By Loging in you agree to Terms of Services and Privacy Policy
Claim your free MCQ
Please specify
Sorry for the inconvenience but we’re performing some maintenance at the moment. Website can be slow during this phase..
Please verify your mobile number
Login not allowed, Please logout from existing browser
Please update your name
Subscribe to Notifications
Stay updated with the latest Current affairs and other important updates regarding video Lectures, Test Schedules, live sessions etc..
Your Free user account at abhipedia has been created.
Remember, success is a journey, not a destination. Stay motivated and keep moving forward!
Refer & Earn
Enquire Now
My Abhipedia Earning
Kindly Login to view your earning
Support
Type your modal answer and submitt for approval
When a, fall in price of a commodity reduces total expenditure and a rise in price increases it, price elasticity of demand will be
l
< 1
> 1
Infinity
Elasticity is more than One (Ed > 1): When demand is elastic, a fall in the price of a commodity results in increase in total expenditure on it. On the other hand, when price increases, total expenditure decreases. It means, in case of highly elastic demand, price and total expenditure move in the opposite directions. Elasticity is less than One (Ed < 1) When demand is inelastic, a fall in the price of a commodity leads to fall in total expenditure on it. On the other hand, when price increases, total expenditure also increases. It means, in case of less elastic demand, price and total expenditure move in the same direction. Elasticity is equal to One (Ed = 1): When demand is unitary elastic, a fall or rise in the price of the commodity does not change the total expenditure. It means, total expenditure will remain unchanged in case of unitary elastic demand. Total Expenditure Method:
Price Elasticity of demand can also be calculated by Total Expenditure Method. This method was suggested by Prof. Marshall. This method is also known as Total Outlay or Total Revenue method. Under this method, price elasticity is measured by comparing Total Expenditure (TE) on the commodity before and after the change in price.
By: Atul Sambharia ProfileResourcesReport error
Access to prime resources
New Courses