Question

If the inverse demand function is P=A-BQ, where A and B are positive constants, what is the elasticity at Q = $\frac{A}{2B}$ ?

• A. -B
• B. $\frac{1}{B}$
• C. 2A
• D. 1

Answer 1

Answer: (D)

1

Answer 2

The correct option is(D): 1