A Correct Formula (Dropping All Minus Signs)for the Calculation of the Elasticity

question 144

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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