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 & Solution

Correct Answer: Option B

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In case the price (P) quantity (Q) and changes ( )...

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

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