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Given the following four possibilities ,which one results in an increase in total consumer expenditure?
  • a)
    Demand is unitary elastic & price falls
  • b)
    Demand is elastic & price rises
  • c)
    Demand is inelastic & price falls
  • d)
    Demand is inelastic & price rises
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Given the following four possibilities ,which one results in an increa...
Increase in total expenditure will have two effect on price. if the price rises than the demand is inelastic and if the price falls than the demand is elastic. Thus in the given example we observe that total expenditure increases then the demand will inelastic with rise in price because there is a direct relationship between the price and total expenditure.
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Most Upvoted Answer
Given the following four possibilities ,which one results in an increa...
B)Demand is elastic

c)Demand is inelastic

d)Demand is perfectly inelastic

The correct answer is b) Demand is elastic. When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, resulting in an increase in total consumer expenditure.
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Given the following four possibilities ,which one results in an increase in total consumer expenditure?a)Demand is unitary elastic & price fallsb)Demand is elastic & price risesc)Demand is inelastic & price fallsd)Demand is inelastic & price risesCorrect answer is option 'D'. Can you explain this answer?
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Given the following four possibilities ,which one results in an increase in total consumer expenditure?a)Demand is unitary elastic & price fallsb)Demand is elastic & price risesc)Demand is inelastic & price fallsd)Demand is inelastic & price risesCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Given the following four possibilities ,which one results in an increase in total consumer expenditure?a)Demand is unitary elastic & price fallsb)Demand is elastic & price risesc)Demand is inelastic & price fallsd)Demand is inelastic & price risesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given the following four possibilities ,which one results in an increase in total consumer expenditure?a)Demand is unitary elastic & price fallsb)Demand is elastic & price risesc)Demand is inelastic & price fallsd)Demand is inelastic & price risesCorrect answer is option 'D'. Can you explain this answer?.
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