14. Percentage
method
|
total outlay
method
|
|
1.
Meaning
This
method measures price elasticity of demand when there is a small change in
price.
2.
Variables
This
method considers two variables, i.e., price and quantity demanded.
|
This method measures price elasticity of
demand on the basis of expenditure incurred with a change in price of a
commodity.
This method considers three variables,
i.e., price, quantity demanded and total outlay.
|
PERCENTAGE METHOD TOTAL OUTLAY METHOD
