Consider the Supply Curve $Q ^ { s } = 2 P$

question 31

Multiple Choice

Consider the supply curve $Q ^ { s } = 2 P$ and the demand curve $Q ^ { d } = 90 - P$ . 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) \([ ( 59 - 60 ) / ( 31 - 30 ) ] \times ( 30 / 60 )\)
• B) \([ ( 56 - 60 ) / ( 31 - 30 ) ] \times ( 30 / 60 )\)
• C) \([ ( 59 - 61 ) / ( 31 - 30 ) ] \times ( 30 / 60 )\)
• D) \([ ( 59 - 62 ) / ( 32 - 30 ) ] \times ( 30 / 60 )\)

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Treasury

The department within a government or corporation responsible for managing financial operations, including revenue, expenditure, and debt.