Consider the Supply Curve Q^s = 2P and the Demand

question 8

Multiple Choice

Consider the supply curve Q^s = 2P 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)] x (30/60)
• B) [(56 - 60)/ (31 - 30)] x (30/60)
• C) [(59 - 61)/ (31 - 30)] x (30/60)
• D) [(59 - 62)/ (32 - 30)] x (30/60)