Arrange the statements to define the relationship between elasticity and expenditure of a commodity.

(A) The percentage increase in quantity demanded is greater than the percentage decline in the price.

(B) The impact on expenditure depends on how responsive the demand for the good is to the price change.

(C) The nature of price elasticity of demand is elastic.

(D) Expenditure on the goods will increase.

Choose the correct answer from the options given below:

Option 1 -> Starts with condition (A), then classification (C), then principle (B), then result (D) - illogical flow.

Option 2 -> Starts with condition (A), then principle (B), then classification (C), then result (D) - condition before principle is incorrect.

Option 3 -> Starts with principle (B), then condition (A), then result (D), then classification (C) - follows logical progression from general to specific to outcome.

Option 4 -> Starts with classification (C) before establishing the condition - premature classification.

Hence, Option 3: (B), (A), (D), (C) -> This sequence correctly establishes the relationship: First, it introduces the general principle that expenditure depends on demand responsiveness (B). Then it describes the specific condition where quantity increase exceeds price decline (A). Next, it states the logical outcome that expenditure increases (D). Finally, it classifies this scenario as elastic demand (C). This progression moves from general principle → specific condition → result → classification, which is the most logical way to define the relationship between elasticity and expenditure. -> correct