The formula for the point price elasticity can be written as:
A) $\eta$ = ($\Delta$Q / $\Delta$P)(P / Q).
B) $\eta$ = ($\Delta$P / $\Delta$Q)(P / Q).
C) $\eta$ = ($\Delta$Q / $\Delta$P)(Q / P).
D) $\eta$ = ($\Delta$P / $\Delta$Q)(Q / P).
E) none of the above.

Question

Quizplus · Accepted Answer

The correct formula for point price elasticity of demand is indeed (ΔQ/ΔP) * (P/Q), which represents the percentage change in quantity demanded over the percentage change in price, multiplied by the price to quantity ratio. This is a standard economic formula used to measure how sensitive the quantity demanded of a good is to a change in its price.

The Formula for the Point Price Elasticity Can Be Written η\etaη

The Formula for the Point Price Elasticity Can Be Written $\eta$