Question:

The formula for computing price elasticity of demand is

Updated On: May 18, 2024

\((\frac{Q}{\Delta Q}) \times (\frac{\Delta P}{P})\)
\((\frac{\Delta P}{\Delta Q}) \times \frac{P}{Q}\)
\((\frac{\Delta Q}{Q}) \times (\frac{P}{\Delta P})\)
\((\frac{\Delta Q}{P}) \times (\frac{\Delta P}{Q})\)

Hide Solution

Verified By Collegedunia

The Correct Option is C

Solution and Explanation

The correct option is (C): (ΔQ/Q} × (P/ΔP)

Was this answer helpful?

0

0

Top Questions on The elasticity of demand and its measurement

The following table provides different statistical model specifications along with the elasticity of y_t with respect to x_t. Which one of the following options is correct ?

Row	Statistical Model	Elasticity
1	\(y_t=β_1+β_2\frac{1}{x_t}\epsilon_t\)	\(-\frac{β_2}{x^2_t}\)
2	\(y_t=β_1-β_2\text{ln}(x_t)+\epsilon_t\)	\(-\frac{β_2}{x^2_t}\)
3	ln(y_t) = β₁ + β₂ ln(x_t) + ε_t	β₂
4	ln(y_t) = β₁ + β₂x_t + ε_t	β₂x_t
5	ln(y_t) = β₁ + β₂ ln(x_t) + ε_t	β₂ exp(xt)
6	ln(y_t) = β₁ + β₂x_t + ε_t	\(β_2\frac{1}{\text{exp}(x_t)}\)

GATE XH-C1 - 2024
Statistics, Econometrics & Mathematical Economics
The elasticity of demand and its measurement

View More Questions

Questions Asked in CUET exam

View More Questions