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If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to

If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to Correct Answer Increase

If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to Increase. 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.

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The pie chart given below shows the expenditure of a family on six different articles A, B, C, D, E and F in a month. Total expenditure on all these six articles is Rs. 42000. Expenditure on a particular article is shown as a percent of total expenditure on all these six articles. Which of the following statement(s) is/are correct? I. Expenditure on article C is Rs. 5560 more than the expenditure on article A. Il. Ratio of expenditure on article A to the expenditure on article D is 5: 4 respectively.
If the demand of a commodity is inelastic, an increase in its price will cause the total expenditure of the consumers of the goods to
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to
Consider the following statements about impact of tax: 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to
Consider the following statements
1. Decrease in demand is caused by change in factors other than own price of the commodity.
2. Contraction of demand is caused by decrease in own price of the same commodity.
3. Extension of demand is caused by increase in own price of the same commodity.
Which of the statement(s) given above is/are correct?
Which of the following statement is/are correct?
1. When the percentage change in demand is greater than that of price, then demand is relatively inelastic.
2. When the demand remains unchanged at all price variation, it is perfectly inelastic.
Select the correct answer
From the following determinants of the price elasticity of demand, indicate the correct option for the determinants having a positive relationship with the degree of the price elasticity of demand.
1. Range of substitutes of the commodity
2. Extent of the different uses of the commodity
3. Portion of the income of the buyer spent on the commodity
4. Income group of buyers purchasing the commodity
As a result of increase in the price of good X, whose demand is inelastic, the total expenditure of the consumers of good X, will