If the demand for a good is price elastic, a fall in price will lead to ____________.

a rise in total expenditure on the good

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a fall in sales

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a fall in total expenditure on the good

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no change

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Solution

The correct option is B a rise in total expenditure on the good
If the demand for a good is price elastic $(E > 1)$ , a fall in price will lead to a rise in total expenditure on the good as per the total outlay method of measuring elasticity of demand.

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If the demand for a good is price elastic, a fall in price will lead to ____________.

The correct option is B a rise in total expenditure on the goodIf the demand for a good is price elastic (E>1), a fall in price will lead to a rise in total expenditure on the good as per the total outlay method of measuring elasticity of demand.

The correct option is B a rise in total expenditure on the good
If the demand for a good is price elastic $(E > 1)$ , a fall in price will lead to a rise in total expenditure on the good as per the total outlay method of measuring elasticity of demand.