Re: jnu sis

Posted by aditi5000 on May 16, 2012; 5:34pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-sis-tp7561861p7562338.html

4.suppose that 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 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%

answer
(c) Expenditure on X will rise by 2.2%