The formula for price elasticity of demand that is used in practice
A)usually drops all minus signs.
B)usually takes on different values at different points on the demand curve.
C)may calculate the percentage change in price between P1 and P2 as "(P2 - P1) as a percentage of (P1 + P2)/2."
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A is correct as the formula drops all minus signs to ensure that the result obtained is always positive. 
B is correct as the value of price elasticity of demand differs at different points on the demand curve due to changes in the slope of the curve.
C is correct as this is one of the methods of calculating the percentage change in price. 
Therefore, all options are correct, and the answer is D.

The Formula for Price Elasticity of Demand That Is Used