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Question : ______is one of the methods of measuring Elasticity of Demand?
A: Total outlay method
B: Percentage method

Option 1: Only A is correct

Option 2: Only B is correct

Option 3: Both are correct 

Option 4: None of the above


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Both are correct


Solution : One way to gauge the elasticity of demand is by total outlay, often known as the total expenditure approach.
There are four ways to calculate demand elasticity. They are the percentage method, point method, arc method, and expenditure method.
Hence option c is the correct answer.

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