If the demand is less than unitary elastic , the total outlay of the consumers will change in the opposite direction of change in price.

True

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False

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Solution

The correct option is B False
False. If the demand is less than unitary elastic, the total outlay of the consumers will change in the same direction of change in price. In this case when the total expenditure rises with a rise in price and decreases with a fall in price elasticity will be less than 1.

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