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The Formula for the Arc Elasticity of Demand Can Be η\eta

Question 7

Multiple Choice

The formula for the arc elasticity of demand can be written as:


A) η\eta XY = [ Δ\Delta QX /(Q1X + Q2X) ]/[ Δ\Delta X/(P1X + P2X) ].
B) η\eta XY = [ Δ\Delta QX /(Q1Y + Q2Y) ]/[ Δ\Delta Y/(P1X + P2X) ].
C) η\eta XY = [ Δ\Delta QX /(Q1X + Q2X) ]/[ Δ\Delta PY/(P1Y + P2Y) ].
D) η\eta XY = [ Δ\Delta PX /(P1X + P2X) ]/[ Δ\Delta QY/(Q1Y + Q2Y) ].
E) none of the above.

Correct Answer:

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