micro economics
This query is : Resolved
ankit singh
(Querist)
28 May 2010
if the demand of the good is inelastic in its price will cause the total expenditure of the consumers of the good to increase or decrease? why
CMA.Palani Arumugam
(Expert)
28 May 2010
Since the demand is inelastic, the total expenditure will depend upon the price of the goods.
For eg. If the demand is 100 (which is inelastic) and the price is Rs.10 , the total expenditure is Rs.1000/-
Now, if the price increases to Rs.11, then the total expenditure will be Rs.1100/- and if the price decrease to Rs.9 then the total expenditure will be Rs.900.
Hope u understood.
For eg. If the demand is 100 (which is inelastic) and the price is Rs.10 , the total expenditure is Rs.1000/-
Now, if the price increases to Rs.11, then the total expenditure will be Rs.1100/- and if the price decrease to Rs.9 then the total expenditure will be Rs.900.
Hope u understood.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Missed uploading GST Invoice
- RCM and same line
- Appointment of Auditor By Form ADT-1
- TDS Return Statement Status
- ARCA LOGIN
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
