Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

In the Linear Demand Curve AB, the elasticity of demand $(e_D)$ at point D can be measured  geometrically by the formula.

Options:

$e_D=\frac{DA}{DB}$

$e_D=\frac{DB}{DA}$

$e_D-=\frac{BK}{KA}$

$e_D=\frac{KA}{BK}$

Correct Answer:

$e_D=\frac{DA}{DB}$

Explanation:

The correct answer is option (1) : $e_D=\frac{DA}{DB}$