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If the demand is inelastic, what will be the effect of a fall in price on consumer's total outlay (expenditure)? - Economics

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If the demand is inelastic, what will be the effect of a fall in price on consumer's total outlay (expenditure)?

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उत्तर

Total expenditure falls: If demand is inelastic, a fall in price will lead to a decrease in consumer's total expenditure. This is because the percentage increase in quantity demanded is less than the percentage decrease in price.

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पाठ 4: Elasticity of Demand - TEST YOURSELF QUESTIONS [पृष्ठ ७२]

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फ्रँक Economics [English] Class 12 ISC
पाठ 4 Elasticity of Demand
TEST YOURSELF QUESTIONS | Q 21. | पृष्ठ ७२
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