Question

57. If as a result of increase in price total outlay on the commodity remains same, then the ep is equal to
(AO
(B) 1
(C) 2
(D) 00​

Answer 1

Answer:

Elasticity is equal to One (Ed = 1):

ADVERTISEMENTS: When demand is unitary elastic, a fall or rise in the price of the commodity does not change the total expenditure. It means, total expenditure will remain unchanged in case of unitary elastic demand.