-Refer to Figure 2.4.The elasticity of demand at point a is given by
A) The slope of line ab
B) The slope of line cd
C) The slope of line cd times (P1/Q1)
D) The slope of line ab times (Q1/P1)

Question

-Refer to Figure 2.4.The elasticity of demand at point a is given by
A) The slope of line ab 
B) The slope of line cd 
C) The slope of line cd times (P1/Q1) 
D) The slope of line ab times (Q1/P1)

Quizplus · Accepted Answer

Elasticity of demand at a point is calculated using the formula: (Slope of the demand curve) * (P/Q). Here, the slope of line cd represents the slope of the demand curve, and it is multiplied by (P1/Q1) to find the elasticity at point a.