PERCENTAGE METHOD TOTAL OUTLAY METHOD

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.