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Question : Elasticity is quantified by
A: Geometrical Method 
B: Arithmetical Method

Option 1: Only A correct 

Option 2: Only B correct 

Option 3: Both are correct

Option 4: None of the above


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

Correct Answer: Only A correct 


Solution : There are four methods of measuring the elasticity of demand. They are the percentage method, point method, arc method, and expenditure method.
A geometric method is also called the point method of measuring elasticity. Under this method, elasticity is measured at different points on a demand curve. 
Hence only A is the correct answer.

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