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प्रश्न
True or False with Reason:
According to total outlay method, expenditure decreases with rise in price of the given commodity in case of elastic demand.
चूक किंवा बरोबर
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उत्तर
This statement is true.
Explanation:
- In case of elastic demand, price and total expenditure move in opposite directions.
- When price rises, quantity demanded falls proportionately more, so total expenditure decreases.
- Hence, expenditure decreases with a rise in price when demand is elastic.
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