Dheeraj Asked a Question
July 14, 2020 1:00 pmpts 30 pts
which option is correct and why(detailed explanation needed)? Also tell why other options are not selected?
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  • Nidhi taparia Best Answer
    Since a detailed explanation is needed, I will explain each option in a separate comment. The confusion in this question arises out of the fact that there are multiple ways to cal...
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  • Nidhi taparia thankyou
    Coming to option (A), again we make use of the geometric method. Elasticity across a linear demand curve is calculated by taking ratio of lower segment to upper segment, and this y...
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  • Priya gulani
    nice explanation
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  • Nidhi taparia
    Option (C) is also correct because that's what the formula needs. Price elasticity of demand pertains to how much does the quantity demanded change for a unit change in price. This...
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  • Nidhi taparia
    Option (D) is correct and it also makes use of the geometric method again. Please refer to my first comment for a detailed explanation, and this attached figure as well.
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  • Nidhi taparia
    Let me know if the concept is still not very clear.
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