SSC CGL Exam > SSC CGL Videos > SSC CGL Tier 2 - Study Material, Online Tests, Previous Year > Total Expenditure Method to Calculate Elasticity of Demand - Economics
Total Expenditure Method to Calculate Elasticity of Demand - Economics Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
FAQs on Total Expenditure Method to Calculate Elasticity of Demand - Economics Video Lecture - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
| 1. What is the total expenditure method used to calculate the elasticity of demand? |  |
Ans. The total expenditure method is a technique used in economics to calculate the elasticity of demand. It involves comparing the percentage change in the total expenditure of a good or service with the percentage change in its price. By dividing the percentage change in total expenditure by the percentage change in price, we can determine the elasticity of demand for that particular product.
| 2. How is the elasticity of demand calculated using the total expenditure method? | |
Ans. To calculate the elasticity of demand using the total expenditure method, we follow these steps:
1. Collect data on the initial price and quantity demanded of the product.
2. Collect data on the new price and quantity demanded after a change in price.
3. Calculate the percentage change in price by dividing the difference between the new and initial price by the initial price.
4. Calculate the percentage change in quantity demanded by dividing the difference between the new and initial quantity demanded by the initial quantity demanded.
5. Divide the percentage change in quantity demanded by the percentage change in price to obtain the elasticity of demand.
| 3. Why is the total expenditure method used to calculate elasticity of demand? | |
Ans. The total expenditure method is used to calculate the elasticity of demand because it takes into account both the price and quantity changes of a product. By examining the percentage changes in both price and quantity demanded, we can determine how sensitive the demand for a product is to price changes. This method provides a comprehensive measure of elasticity that considers the overall impact on consumers' total expenditure.
| 4. What does a positive elasticity of demand indicate when using the total expenditure method? | |
Ans. A positive elasticity of demand, when using the total expenditure method, indicates that the product is a normal good. This means that as the price of the product increases, the total expenditure on it also increases. Conversely, when the price decreases, the total expenditure decreases. This positive relationship suggests that consumers are responsive to changes in price and adjust their purchasing behavior accordingly.
| 5. Can the total expenditure method be used to calculate elasticity of demand for all types of goods? | |
Ans. Yes, the total expenditure method can be used to calculate the elasticity of demand for all types of goods. However, it is particularly useful for goods that constitute a significant portion of consumers' budgets. For goods with elastic demand, a small change in price can lead to a proportionately larger change in total expenditure. For goods with inelastic demand, a change in price has a relatively smaller impact on total expenditure. Therefore, the total expenditure method provides insights into how consumers' spending patterns change in response to price fluctuations.
About this Video
4.82/5
Rating
Sep 21, 2025
Last updated
Video Description: Total Expenditure Method to Calculate Elasticity of Demand - Economics for SSC CGL 2025 is part of SSC CGL Tier 2 - Study Material, Online Tests, Previous Year preparation.
The notes and questions for Total Expenditure Method to Calculate Elasticity of Demand - Economics have been prepared according to the SSC CGL exam syllabus.
Information about Total Expenditure Method to Calculate Elasticity of Demand - Economics covers all important topics for SSC CGL 2025 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Total Expenditure Method to Calculate Elasticity of Demand - Economics.
Introduction of Total Expenditure Method to Calculate Elasticity of Demand - Economics in English is available as part of our SSC CGL Tier 2 - Study Material, Online Tests, Previous Year for SSC CGL & Total Expenditure Method to Calculate Elasticity of Demand - Economics in
Hindi for SSC CGL Tier 2 - Study Material, Online Tests, Previous Year course. Download more important topics related with notes, lectures and mock test series for
SSC CGL Exam by signing up for free.
Description
Video Lecture & Questions for Total Expenditure Method to Calculate Elasticity of Demand - Economics Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year - SSC CGL full syllabus preparation | Free video for SSC CGL exam to prepare for SSC CGL Tier 2 - Study Material, Online Tests, Previous Year.
Information about Total Expenditure Method to Calculate Elasticity of Demand - Economics
Here you can find the meaning of Total Expenditure Method to Calculate Elasticity of Demand - Economics defined & explained in the simplest way possible.
Besides explaining types of Total Expenditure Method to Calculate Elasticity of Demand - Economics theory, EduRev gives you an ample number of questions to practice Total Expenditure Method to Calculate Elasticity of Demand - Economics tests,
examples and also practice SSC CGL tests.
Related Searches
Previous Year
,Total Expenditure Method to Calculate Elasticity of Demand - Economics Video Lecture | SSC CGL Tier 2 - Study Material
,Semester Notes
,Previous Year Questions with Solutions
,Exam
,Online Tests
,past year papers
,Online Tests
,shortcuts and tricks
,Online Tests
,Free
,Total Expenditure Method to Calculate Elasticity of Demand - Economics Video Lecture | SSC CGL Tier 2 - Study Material
,Extra Questions
,mock tests for examination
,Total Expenditure Method to Calculate Elasticity of Demand - Economics Video Lecture | SSC CGL Tier 2 - Study Material
,study material
,video lectures
,Objective type Questions
,Previous Year
,Important questions
,Sample Paper
,Viva Questions
,Summary
,MCQs
,practice quizzes
,Previous Year
,ppt
;
Study Total Expenditure Method to Calculate Elasticity of Demand - Economics on the App
Students of SSC CGL can study Total Expenditure Method to Calculate Elasticity of Demand - Economics alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Total Expenditure Method to Calculate Elasticity of Demand - Economics,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Total Expenditure Method to Calculate Elasticity of Demand - Economics is prepared as per the latest SSC CGL syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup