Q:

What is a total expenditure?

A:

Quick Answer

Total expenditure is an economic term used to describe the total amount paid on one or more products in a given period, according to AmosWEB. To calculate the total expenditure multiply the quantity of the product purchased by the price at the time it was purchased.

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Full Answer

The total expenditure of the commodities purchased depends on the price elasticity of demand, notes AmosWEB. Since the changes in price and quantity moves in an opposite direction in the demand curve, the change in total expenditure depends upon the relative changes in price and quantity. In an elastic demand, total expenditure changes in the opposite direction of the price while in inelastic demand the total expenditure changes in the same direction of the price.

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