Question

Assertion (A): Total expenditure method measures elasticity of demand at a given point on
the demand curve.
Reasoning (R): Total expenditure refers to the product of price and quantity demanded.
Options: 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)​

Answer 1

Answer:

3

both (A) and (R) are correct and (R) is the correct explanation of (A)