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

Question 50

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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