In case the price (P), quantity (Q), and changes (?) are represented by respective symbols given in the brackets, the price elasticity ofdemand (Ed) is measured by
A. $${E_d} = \frac{{\Delta Q}}{{\Delta P}}$$
B. $${E_d} = \frac{{\frac{{\Delta Q}}{Q}}}{{\frac{{\Delta P}}{P}}}$$
C. $${E_d} = \frac{{\Delta P}}{{\Delta Q}}$$
D. $${E_d} = \frac{{\frac{{\Delta P}}{P}}}{{\frac{{\Delta Q}}{Q}}}$$
Answer: Option B
This Question Belongs to Management >> Managerial Economics
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