The formula for price elasticity of demand that is used in practice
A)usually drops all minus signs.
B)usually takes on different values at different points on the demand curve.
C)may calculate the percentage change in price between P1 and P2 as "(P2 − P1)as a percentage of (P1 + P2)\2."
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

All of the responses are correct. The formula used in practice may drop all minus signs, take on different values at different points on the demand curve, and calculate the percentage change in price between P1 and P2 as "(P2 − P1) as a percentage of (P1 + P2)/2."

The Formula for Price Elasticity of Demand That Is Used