Ritu posted an Question
May 23, 2020 • 21:48 pm 30 points
  • UGC NET
  • Economics

Question given the demand function: mcq q=, where symbols have their usual meaning, at which price, the elasticity of demand would be unity? (january paper-2) c

Question Given the demand function: MCQ Q=, where symbols have their usual meaning, at which price, the elasticity of demand would be unity? (January Paper-2) ChoiceS CHOICE (4) RESPONSE 5 a. b. 20 C. 10 d. All a. , b. and c. are correct

1 Answer(s) Answer Now
  • 0 Likes
  • 2 Comments
  • 0 Shares
  • comment-profile-img>
    Nidhi taparia Best Answer

    The answer is option (d) All other options are correct. Please refer to the images for the calculation. As a matter of fact, in this kind of a demand function, price elasticity of demand will always be equal to unity. This is because quantity demanded is proportionate to price.

    cropped4385156819781092554.jpg
whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers