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MICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND2 Marks
Question
Suppose there was a 4 per cent decrease in the price of a good, and as a result, the expenditure on the good increased by 2 per cent. What can you say about the elasticity of demand?
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Answer

Elasticity of demand of the commodity in this case will be greater than unitary elastic because with fall in price of the commodity, total expenditure increases.

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