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Consider the Supply Curve Qs = 2P and the Demand

Question 8

Multiple Choice

Consider the supply curve Qs = 2P and the demand curve Qd = 90 - P. Which expression best shows how you would calculate the elasticity of demand when P increases by 1 along the demand curve from its equilibrium value?


A) [(59 - 60) / (31 - 30) ] x (30/60)
B) [(56 - 60) / (31 - 30) ] x (30/60)
C) [(59 - 61) / (31 - 30) ] x (30/60)
D) [(59 - 62) / (32 - 30) ] x (30/60)

Correct Answer:

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