CA Foundation Exam > CA Foundation Questions > The demand of a product at the rate of10 is 1...
Start Learning for Free
The demand of a product at the rate of 
10 is 100 units. When the rate is decreased to 
8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?
10 is 100 units. When the rate is decreased to 8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?- a)Unitary
- b)Less than unitary
- c)More than unitary
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The demand of a product at the rate of10 is 100 units. When the rate i...
- The total expenditure method analyzes elasticity by comparing changes in total revenue (price × quantity) when price changes.
- Initially: (10 times 100 = 1000).
- New scenario: (8 times 130 = 1040).
- Total revenue increased from 1000 to 1040 when the price decreased, indicating demand is elastic.
- Elasticity greater than one implies consumers' demand is highly responsive to price changes.
- Therefore, the elasticity of demand is more than unitary, thus the correct answer is C: More than unitary.
- Initially: (10 times 100 = 1000).
- New scenario: (8 times 130 = 1040).
- Total revenue increased from 1000 to 1040 when the price decreased, indicating demand is elastic.
- Elasticity greater than one implies consumers' demand is highly responsive to price changes.
- Therefore, the elasticity of demand is more than unitary, thus the correct answer is C: More than unitary.
Most Upvoted Answer
The demand of a product at the rate of10 is 100 units. When the rate i...
When we find elasticity of demand we get answer more than one so it is more than unitaty
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer?
Question Description
The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer?.
The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer?.
Solutions for The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The demand of a product at the rate of10 is 100 units. When the rate is decreased to8 per unit, the demand rises to 130 units. What is the elasticity of demand according to the total expenditure method?a)Unitaryb)Less than unitaryc)More than unitaryd)None of theseCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup