Question

The formula for computing price elasticity of demand is

• A. $(\frac{Q}{\Delta Q}) \times (\frac{\Delta P}{P})$
• B. $(\frac{\Delta P}{\Delta Q}) \times \frac{P}{Q}$
• C. $(\frac{\Delta Q}{Q}) \times (\frac{P}{\Delta P})$
• D. $(\frac{\Delta Q}{P}) \times (\frac{\Delta P}{Q})$

Answer 1

Answer: (C)

$(\frac{\Delta Q}{Q}) \times (\frac{P}{\Delta P})$

Answer 2

The correct option is (C): (ΔQ/Q} × (P/ΔP)