Answer Posted / somayeh
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.
Is This Answer Correct ? | 8 Yes | 1 No |
Post New Answer View All Answers
what is the procedure of interview question in genpact
which are the basic princeples of accountancy... with examples
Define Salry for the following purpose 1.To calculate HRA
plz tell me short cut method in maths for clerck post in bank
i have working in contruction company i want billing outside delhi pls. tell me can i bill with tax invoice party provide tin no.
let me know the difference between net cash flow and income
Name some errors which can be detected by Trial Balance
Expand--------OTA
i want the difference p&l a/c and Income and expediture statement
how to maintain E-Commerce companies accounts
what are the content of purchase order?
im preparing for the sbi clerical post please send me the solved questions.
what is Tds %,Service tax %,Cess %,and ESI,PF %,and what is the use of this.
Short Answer on ______________Import Trade
what do you mean by jounal voucher? Jounal entry for dishonored cheque can be possible thruogh jv?