Would the elasticity of demand in the following cases be unity, less t

1.	Would the elasticity of demand in the following cases be unity, less than unity or greater than unity? 1. A rise in the price of a commodity reduces the total expenditure. 2. A rise in the price of a commodity decreases total expenditure. 3. A fall in the price of a commodity increases total expenditure 4. A fall in the price of a commodity, the total expenditure remains the same.
Answer» 1. Elasticity of Demand would be greater than unity (e_P > 1) 2. Elasticity of Demand would be less than unity (e_P < 1) 3. Elasticity of Demand would be greater than unity (e_P > 1) 4. Elasticity of Demand would be unity (e_P = 1)

Would the elasticity of demand in the following cases be unity, less than unity or greater than unity? 1. A rise in the price of a commodity reduces the total expenditure. 2. A rise in the price of a commodity decreases total expenditure. 3. A fall in the price of a commodity increases total expenditure 4. A fall in the price of a commodity, the total expenditure remains the same.

Answer»

1. Elasticity of Demand would be greater than unity (e_P > 1)

2. Elasticity of Demand would be less than unity (e_P < 1)

3. Elasticity of Demand would be greater than unity (e_P > 1)

4. Elasticity of Demand would be unity (e_P = 1)