Question 26
MediumOriginal questionA demand schedule is given.
| Price (₹) | Quantity demanded |
|---|---|
| 10 | 20 |
| 8 | 30 |
| 6 | 40 |
| 4 | 60 |
| 2 | 100 |
By the total expenditure method, what is demand like when the price falls from ₹6 to ₹4?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Spending at ₹6 = 6 × 40 = ₹240; at ₹4 = 4 × 60 = ₹240.
Spending is unchanged, so demand is unitary elastic over this range.
- Concept
- Unitary elasticity from spending
- Typical timeTypical
- 70 s
- Your timeYours
- —
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