The percentage method uses the formula (ΔQ%/ΔP%), while the total expenditure method observes if spending moves with or against price. For example, if a 10% price rise causes demand to fall 20%, elasticity is 2, and total expenditure falls, confirming elastic demand. But in my lane, no one calculates this for a kurta; if I raise my price by ten rupees, Mrs. Sharma just sighs and pays, her expenditure rising, showing inelastic demand for my precise work. Theory is clean, but loyalty and a perfect fit bend the curve.
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