Home
Class 11
ECONOMICS
Suppose there was a 4% decrease in price...

Suppose there was a 4% decrease in price of a good and the expenditurwe on good increased by 2% . What can you say about elasticty of demand ?

Text Solution

Verified by Experts

The correct Answer is:
Since price and total expenditure change in opposite direction , hecne `P.e_(D) gt 1`.
Promotional Banner

Topper's Solved these Questions

  • ELASTICITY OF DEMAND

    RADHA BHUGANA|Exercise Very short answer|9 Videos

  • ELASTICITY OF DEMAND

    RADHA BHUGANA|Exercise Short Answere type Questions|21 Videos

  • ELASTICITY OF DEMAND

    RADHA BHUGANA|Exercise Value based Questions|3 Videos

  • CONSUMER'S EQUILIBRIUM

    RADHA BHUGANA|Exercise UNSOLVED NUMERICALS|8 Videos

  • FORMS OF MARKET AND PRICE DETERMINATION UNDER PERFECT COMPETITION WITH SIMPLE APPLICATIONS

    RADHA BHUGANA|Exercise VERY SHORT ANSWET TYPE QUESTIONS (1 MARK)|2 Videos

Similar Questions

Explore conceptually related problems

As price of a 5 per cent fall in the price of a good, its demand rises by 12 % find out the price elasticity of demand.

when price of a good falls from ₹ 5 to ₹ 3 per unit, its demand rises by 40 % . Calculate its price elasticity of demand.

Suppose price elasticity of demand for a good is -0.2. How will the expenditure on good be affected if there is 10% increase in price of the good ?

A 7% fall in the price of a good leads to 49% increase in demand of the good . Find out E_(P) .