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Elasticity of demand is given by
A(dQ/dP) × (P/Q)
B(dP/dQ) × (Q/P)
CdQ/dP only
D(dQ × P) / (Q × dP)
Answer & Solution
Correct answer: A. (dQ/dP) × (P/Q)
1. Price elasticity of demand e_d = % change in quantity / % change in price.
2. Formally e_d = (dQ/dP) × (P/Q).
3. It is negative for normal goods; we often report absolute value.
4. Hence (A) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 7 "Application of Derivatives", §7.4 ¶§7.4_
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