When the total expenditure by the consumer on commodity due to change in its price remains the same; the elasticity of demand for the commodity wil (a) 0 (b) 1 (c) >1 (d) <1
pls eplain
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Economics doubt
Replies (4)
Elasticity of Demand will Remain "0" because There is no effect on Demand even when Price Changes. Eg. Salt "0" Inelastic
0. DEMAND CHANGES WITH PROPORTIONATE CHANGE IN PRICE IN SUCH CONDITION
Cash sale Rs 50,000, Credit sales Rs 3,50,000, Sales returns 50,000 out of Rs 3,50,000. Goods costing 40,000 were sent of approval basis for 50,000 and the approval is not yet received, then the net sales are (a) 3,50,000 (b) 3,25,000 (c) 3,20,000 (d) Rs. 3,00,000
ans it pls
| Originally posted by : Pratik Shah | ||
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Elasticity of Demand will Remain "0" because There is no effect on Demand even when Price Changes. Eg. Salt "0" Inelastic |
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For unit elastic demand (E =1) price changes do not cause any change in total expenditure. Total expenditure is the same whether price increases or decreases.
which is correct ans 1 or 0?
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