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].

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Adjusted Trial Balance

A list of all account titles and balances after adjusting entries have been made, serving as a check before preparing financial statements.

Partial Worksheet

A preliminary financial document used internally to prepare for the completion of the full financial statements.

Adjusted Trial Balance

A statement that lists all the accounts and their balances after adjusting entries are made, used to prepare financial statements.