Price of a good falls from र 10 to र 8. As a result its demand rises from 80 units to 100 units. What can you say about price elasticity of demand by total expenditure method?
Price (र)
10
Demand (units)
80
100
Total expenditure (र)
800
800
It is a case of unit elastic demand because total expenditure before and after the change in price is the same, i.e., र 800.
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