Relation between elasticity, change in price also total expenditure
1. Elucidate explain how a change in price affects total expenditure by filling in every cell with the resulting change in total expenditure.
Demand is ... Increase in Price Decrease in Price
Elastic
Unit-elastic
Inelastic
2. You buy only apples also bananas. Your budget is such which you can purchase 3 apples also 4 bananas or 9 apples also 2 bananas. Write down the equation for the budget line with bananas on the y-axis. Is which equation unique?