Question

Elasticity of demand, measured by comparing the ratio of percentage change in the quantity demanded to the percentage change in the price of a commodity, is known as

• A. Expenditure method
• B. Percentage method
• C. Arc elasticity method
• D. Point elasticity method

Answer 1

The correct option is B

Percentage method

Elasticity of demand, measured by comparing the ratio of percentage change in the quantity demanded to the percentage change in the price of a commodity, is known as percentage method. It is one of the methods of measuring the elasticity of demand.