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प्रश्न
True or False with Reason:
If a commodity has unitary elastic demand, then according to total expenditure method, spending by a consumer will not change with change in price.
चूक किंवा बरोबर
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उत्तर
This statement is true.
Explanation:
- Under unitary elastic demand, percentage change in quantity demanded is equal to percentage change in price.
- As a result, total expenditure = price × quantity remains constant.
- Therefore, consumer spending does not change when price changes.
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