the formula for total outlay method is
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Total expenditure = Price × Quantity demanded
In this connection, Marshall has given the following propositions: Relatively elastic demand (Ed > 1): When with a given change in the price of a commodity total outlay increases, the elasticity of demand is greater than one.
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Total outlay method, also known as total expenditure method of measuring price elasticity of demand was developed by Professor Alfred Marshall. According to this method, price elasticity of demand can be measured by comparing total expenditure on a commodity before and after the price change.
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