Question
Economics Question on The elasticity of demand and its measurement
Price of a commodity increases. The demand is inelastic if:
A
Total expenditure (T.E.) on the commodity decreases.
B
T.E. on the commodity increases.
C
T.E. remains same.
D
T.E. becomes zero.
Answer
T.E. on the commodity increases.
Explanation
Solution
The correct option is (B) :T.E. on the commodity increases..