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If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to |
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Answer» Increase If the DEMAND for a COMMODITY is inelastic, an increase in its pice will CAUSE the total expenditure of the consumers of the commodity to Increase. When demand is inelastic, a fall in the price of a commodity leads to fall in total expenditure on it. On the other HAND, when price increases, total expenditure also increases. |
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