Which of the Following Formulas Is Used to Calculate the Arc

question 10

Multiple Choice

Which of the following formulas is used to calculate the arc elasticity of demand?

• A) Arc elasticity of demand = [(Q₂ − Q₁)/(Q₂/2)]/[(P₂ − P₁)/(P₂/2)]
• B) Arc elasticity of demand = [(Q₂ + Q₁)/(Q₂/2)]/[(P₂ + P₁)/(P₂/2)]
• C) Arc elasticity of demand = [(Q₂ − Q₁)/(Q₂ + Q₁)/2]/[(P₂ − P₁)/(P₂ + P₁)/2]
• D) Arc elasticity of demand = [(Q₁ − Q₂)/(Q₂ + Q₁)]/[(P₁ − P₂)/(P₂ + P₁)]

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