Question : Elasticity is quantified by
A: Geometrical Method
B: Arithmetical Method
Option 1: Only A correct
Option 2: Only B correct
Option 3: Both are correct
Option 4: None of the above
Answer (1)
9th Jan, 2024
Correct Answer: Only A correct
Solution :
There are four methods of measuring the elasticity of demand. They are the percentage method, point method, arc method, and expenditure method.
A geometric method is also called the point method of measuring elasticity. Under this method, elasticity is measured at different points on a demand curve.
Hence only A is the correct answer.
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