A person's total spending on grapes rises when the price falls from ₹ 2 per kg to ₹ 1 per kg. What can we say about the person's demand for grapes?
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1 mark, −0.25MicroeconomicsDemand theory and elasticityElasticity, total revenue and total expenditureEasyabout 1 min
JNU SSS 2017 Question 20: Demand theory and elasticity
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Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Elasticity, total revenue and total expenditure, part of Demand theory and elasticity in Microeconomics.
How the elasticity of demand decides whether a price change raises or lowers revenue or spending.
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