Question

what happens to total expenditure on a commodity if its price falls and its demand is price elastic ? and how??

Answer 1

Heya...

• If the price of the commodity falls then the total expenditure increases ...

• As, fall in price leads to high demand of the commodity and it increase the expenditure level...

• So, the elasticity will be high and the consumer change his demand highly responsive...

Thank you

Answer 2

❄❄❄ HEYA BUDDY ❄❄❄

✨ YOUR ANSWER

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⏩ when price of a comodity decreases then its expenditure increases...

And when elastisity increases then consumers change the demands.

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☣ hoPe it hEplS ️❤