Expenditure method of measuring ELasticity of demand || micro economics ||
Автор: speedy learning
Загружено: 2020-10-17
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This video make you clear the expenditure method .
Elasticity of demand equal to unity:
*ratio of change in demand equal to ratio change in price
in this case total expenditure remains same.
Elasticity of demand greater than Unity:
ratio change in demand greater than ratio change in price
total expenditure increses with increase in price
Elasticity of demand less than unity:
ratio change in demand less than ratio change in price
expenditure decreases with decrease in price .
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