Pls ans this!

Pls ans this! The expenditure on a good would change in the opposite direction as the price changes only when demancl is (a) (b) (c) (d) elastic inelastic perfectly inelastic unitary elastic

Dear Student,

(a) Elastic, because when demand is elastic, a fall in the price of a commodity results in an increase in total expenditure on it. On the other hand, when the price increases, total expenditure decreases. It means, in case of highly elastic demand, price and total expenditure move in the opposite directions.

Regards,