Q.When the price of a commodity rises and the total expenditure of consumers on it also rises, the demand for the commodity is:

The total-outlay test links the direction of total expenditure to elasticity. …

Total expenditure is $TE = P \times Q$. When price rises, quantity demanded falls; whether $TE$ rises or falls depends on elasticity. If $TE$ rises despite the price rise, the fall in quantity was less than proportionate to the rise in price — which is exactly inelastic demand ($E_p < 1$). …

Applying the price-fall rule (where rising expenditure means elastic) to a price rise; forgetting tha …