hello
Economics book page 49 states that at unitary elasticity total expenditure is not change.
assume that the quantity increased from 50 to 55 (10%), and the price decreased from $100 to $90 (10%)
total expenditure before the chane = $5000, but after change it be 4950, can someone explain this point please?
using the change in quantity and change in price, it can be concluded that the example is not an example of unitary elastic and this does not agree with the first statement.
please correct me if im wrong guys, my virgin post
They’re saying that for a small change in price or quantity the total expenditure doesn’t change. It’s a calculus thing.
Ten percent is not a small change.