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A Correct Formula (Dropping All Minus Signs) for the Calculation

Question 162

Multiple Choice

A correct formula (dropping all minus signs) for the calculation of the elasticity of demand between point Q₁, P₁ and point Q₂, P₂ is


A) [(P₂ -P₁) /(P₂ + P₁) ]/[(Q₂ - Q₁) /(Q₂ + Q₁) ].
B) [(P₂ - P₁) /P₁]/[(Q₂- Q₁) /Q₁].
C) [(Q₂ - Q₁) /(Q₂ + Q₁) ]/[(P₂ - P₁) /(P₂ + P₁) ].
D) [(Q₂ - Q₁) /Q₂) ]/[(P₂ - P₁) /P₂].

Correct Answer:

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