Consider now a few total expenditure calculations. Total expenditure is calculated as price times quantity.
For example, if the price is 18 cents per minute and the corresponding quantity demanded is 1 million minutes, then total expenditure on Digital Distance telephone services is $180,000 (= $0.18 x 1,000,000).
Alternatively,if the price is 10 cents per minute and the corresponding quantity demanded is 5 million minutes, then total expenditure is $500,000 (= $0.10 x 5,000,000).
Or, if the price is 2 cents per minute and the corresponding quantity demanded is 9 million minutes, then total expenditure on Digital Distance telephone services is also $180,000 (= $0.02 x 9,000,000).
Note that as the price declines from 18 cents to 10 cents, total expenditure increases from $180,000 to $500,000. However, as the price declines further from 10 cents to 2 cents, total expenditure decreases from $500,000 to $180,000. This pattern of increasing then decreasing total expenditure is related to the changing price elasticity of demand on the demand curve.
Total Expenditure is a term used in the Charities Act 1993
in relation to thresholds for scrutiny of non-company
charity accounts, preparation of annual reports and
submission of annual reports and accounts to the
What is Accounting? How to prepare the manual accounts? What
are the manual accounts? What are the subsidary books? How
to classify, summerising and posting accounts. What are
basic and important stpes to take while preparing
journal,ledger,cashbook, Bank book, Trailbalance, Trading
and profit and loss a/c and Balance sheet.