2014 · Q12
When a fall in price of a commodity reduces total expenditure and a rise in price increases it, price elasticity of demand will be
indian-polity-economyeconomy-fundamentals
- Al
- B< 1
- C> 1
- DInfinity
Explanation
When price and total expenditure move in the same direction (price fall reduces expenditure, price rise increases it), demand is inelastic, i.e. elasticity is less than 1.