When price of a good rises from Rs 5 per unit to Rs 6 per unit, its demand falls from 20 units to 10 units. Compare expenditure on the good to determine whether demand is elastic or inelastic.
Price increases and TE decreases. It shows inverse relationship between price and total expenditure. So, it shows that Elasticity of Demand is elastic or greater than unity, i.e. {{E}_{d}} > 1.