Question 31
MediumOriginal questionSpending on a good is ₹1,000 at ₹10 and ₹1,200 at ₹12. By the total expenditure method, demand is
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Quantity: 1,000 ÷ 10 = 100 and 1,200 ÷ 12 = 100. Spending rises exactly in proportion to price.
Quantity has not changed at all: eₚ = 0.
- Concept
- Spending rising with price in proportion
- Typical timeTypical
- 70 s
- Your timeYours
- —
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