Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Mukesh Kumar Nayak posted an Question
May 14, 2021 • 03:50 am
![]()
30 points
30 points
- UGC NET
- Economics
3. suppose the price elasticity of demand for good x is 0.2. if the price of x rises by 2.8% what effect will it have on the total expenditure on good x? (a) ex
3. Suppose the price elasticity of demand for good X is 0.2. If the price of X rises by 2.8% what effect will it have on the total expenditure on good X? (a) Expenditure on X will fall by 5.6%. (b) Expenditure on X will rise by 5.6%. (c) Expenditure on X will rise by 2.2%. (d) Expenditure on X will fall by 2.2%. (2011)
1 Answer(s)
Answer Now
- 0 Likes
- 2 Comments
- 0 Shares
-
Reshma gupta
![best-answer]()
price elasticity of a good= %change in demand/%change in price price elasticity is 0.2 which is positive so it means that good x have elastic nature.if price would rises by 2.8%,it is sure that demand would be decrease so expenditure. put values in formula= 0.2=change in demand/ 2.8 change in demand= 0.2*2.8= 5.6 so expenditure on good X would fall by 5.6%
Do You Want Better RANK in Your Exam?
Start Your Preparations with Eduncle’s FREE Study Material
- Updated Syllabus, Paper Pattern & Full Exam Details
- Sample Theory of Most Important Topic
- Model Test Paper with Detailed Solutions
- Last 5 Years Question Papers & Answers
Sign Up to Download FREE Study Material Worth Rs. 500/-
Mukesh kumar nayak
Thank you