So total expenditure will decline by about one percent. maybe? im nor really sure if this helps?
The total expenditure method of price elasticity of demand States that, demand is measured by the change in price, quantity and total amount of money spent on it.
The 1% increase in price of the product, then the total expenditure on the product will remain the same, but the quantity demanded decreases.
The total expenditure method to decide the price elasticity of demand is given by Dr. Marshall.
According to this method, elasticity of demand can be determined by evaluating the change in price and the resultant change in the total quantity of goods purchased and the total amount of money spent on it.
If the 1% increase in the price of the product, then there is no impact on the total amount spent on it, it will remain the same and the quantity demand decreases.
Therefore, there is no impact of the amount of total expenditure in response to 1% increase in price.
Learn more about total expenditure method, refer:
https://brainly.com/question/7461153
