Question

Choose the correct answer from given options.

The expenditure on a good would change in the opposite direction as the price changes only when demand is ______

Options

• elastic

• inelastic

• perfectly inelastic

• unitary elastic

Answer 1

The expenditure on a good would change in the opposite direction as the price changes only when demand is Elastic.

Explanation:

The percentage change in quantity demanded in response to a given percentage change in the commodity's own price is known as price elasticity of demand.