Which of the following expressions is valid for the price elasticity of demand?

Question

Quizplus · Accepted Answer

Price elasticity of demand is a numerical value that measures the responsiveness of quantity demanded to a change in price. The correct formula for the price elasticity of demand is percentage change in quantity demanded divided by percentage change in price, denoted as (ΔQ/Q)/(ΔP/P). The options A, C, and D have different alphanumerical codes at the end which are not relevant to the formula. Therefore, option B is the only valid expression for the price elasticity of demand.

Which of the Following Expressions Is Valid for the Price