Vidyalelo
Commerce · Q306

Economics

Graduate and Post Graduate · Commerce · question 306

Q306

When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is

A.
Less than unity
Answer
B.
Unity
C.
Zero
D.
Greater than Unity

Answer: Option A

Solution

Answer: Option A
Solution:
When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is less than unity.