Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Elasticity of Demand is given by the formula.

Options:

$\frac{Q}{\Delta Q} \times \frac{P}{\Delta P}$

$\frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$

$\frac{\Delta P}{P} \times \frac{\Delta Q}{Q}$

$\frac{\Delta Q}{P} \times \frac{Q}{P}$

Correct Answer:

$\frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$

Explanation:

Elasticity of Demand =$\frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$