Demand for a good is termed inelastic through the expenditure approach when if (Choose the correct alternative):

Price of the good falls; expenditure on it rises

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Price of the good falls; expenditure on it falls

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Price of the good falls; expenditure on it remains unchanged

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Price of the good rises, expenditure on it falls

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Price of the good falls; expenditure on it falls
Demand for a good is termed inelastic through the expenditure approach when the price of the good falls, and expenditure on it falls.

Suggest Corrections

Similar questions

R s 10 t o R s 8

20 u n i t s

24

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to _____.

Suppose the price elasticity of demand for a good is −0.2. How will the expenditure on the good be affected if there is a 10% increase in its price?

Join BYJU'S Learning Program