Relationship between Price Elasticity of Demand and Total Expenditure | Microeconomics
Prof. Marshall works out a relationship between price elasticity of demand and total expenditure. He estimates the degree of price elasticity of demand depending on the change in total expenditure caused by a change in own price of the commodity. He states three different situations, as under: Situation 1 - Ed = Unitary or Ed = 1: Elasticity of demand [...]