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प्रश्न
True or False with Reason:
Price Elasticity of Demand is zero if with 20% increase in price, expenditure on the commodity also rises by 20%.
सत्य या असत्य
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उत्तर
This statement is true.
Explanation:
- Total expenditure = price × quantity.
- If price rises by 20% and total expenditure also rises by 20%, quantity demanded must remain unchanged.
- Since quantity demanded does not change, price elasticity of demand is zero.
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