1 explain the total outlay method of measuring elasticity of demand?
2.Explain importance of elasticity of demand
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Alfred Marshall evolved the total outlay, or total revenue or total expenditure method as a measure of elasticity. By comparing the total expenditure of a purchaser both before and after the change in price, it can be known whether his demand for a good is elastic, unity or less elastic.
Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. When a product is elastic, a change in price quickly results in a change in the quantity demanded.
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