Price elasticity of demand (E)is expressed as
A) E = Percentage change in price (%∆ in P) ÷ Percentage change in quantity demanded (%∆ in Q).
B) E = Price (P) ÷ Quantity demanded (Q).
C) E = Percentage change in quantity demanded (%∆ in Q) ÷ Percentage change in price (%∆ in P).
D) E = Quantity demanded (Q) ÷ Price (P).
E) E = Quantity demanded (Q) × Price (P).

Question

Quizplus · Accepted Answer

Price elasticity of demand (E) is expressed as the percentage change in quantity demanded divided by the percentage change in price, which can be represented as E = (%∆ in Q) ÷ (%∆ in P). Therefore, option C is the correct answer. The other options do not represent the price elasticity of demand equation correctly.

Price Elasticity of Demand (E)is Expressed as