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Today General Knowledge(GK)
Price elasticity is computed by
A)
ep = (((Q2- Q1) / Q1 ) / P1) X 100
B)
ep = ((Q2- Q1) / Q1 ) / ((P2 - P1) / P1)
C)
ep = (((Q2- Q1) / Q1 ) / Product) X 100
D)
ep =( (P1 - P2) / Q1 ) X ((P1+P2) / Q2)

Correct Answer : Option (B) - ep = ((Q2- Q1) / Q1 ) / ((P2 - P1) / P1)


Published On : May 18, 2021
Category : Business and Economics
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