When as a result of decrease in the price of a good, the total expenditure made on it decreases, we say that price elasticity of demand is _________.

less than unity

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unity

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zero

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greater than unity

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Solution

The correct option is B less than unity
Under total outlay method, when as a result of decrease in the price of a good, the total expenditure made on it decreases, the price elasticity of demand is less than unity.

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When as a result of decrease in the price of a good, the total expenditure made on it decreases, we say that price elasticity of demand is _________.

The correct option is B less than unityUnder total outlay method, when as a result of decrease in the price of a good, the total expenditure made on it decreases, the price elasticity of demand is less than unity.

The correct option is B less than unity
Under total outlay method, when as a result of decrease in the price of a good, the total expenditure made on it decreases, the price elasticity of demand is less than unity.