LearningContents:                                                              ·      Total Expenditure Method- Price Elasticity of Demand Introduction Total Expenditure Method/ Total Outlay Method Prof. Alfred Marshall has propounded the total expenditure method for measuring the price elasticity of demand. In this method, the relationship between Price and Total Expenditure becomes the basis to measure the price elasticity of demand. As we know that Price and Quantity demand are inversely related to each other. Therefore, the effect of change in price is not only on quantity demanded by the consumers but also on total expenditure. Hence, the total expenditure method measures the price elasticity of demand based on the change in expenditure as a result of a change in the price of the commodity. The formula for calculating the total expenditure is: Total Expenditure = Price × Quantity Demand   Three Cases of Price Elasticity of De