Question

Difference between total revenue and total expenditure in economics

Answer 1

Total revenue (or total expenditure) from the sale of a good is intimately related to the price elasticity of demand. Total revenue is the product of price (P) and the quantity (Q) of the commodity sold (i.e., Total revenue or total expenditure = P x Q).

Answer 2

The difference between total revenue and total expenditure is

1. Revenue deficit.
2. Fiscal deficit.
3. Adverse balance of payments.