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Which of the following is NOT one of the four methods of measuring elasticity of demand listed by ICMAI?
APercentage method
BTotal outlay method
CMarginal revenue method
DArc method
Answer & Solution
Correct answer: C. Marginal revenue method
1. ICMAI lists four methods: Percentage, Total outlay, Point, and Arc.
2. These are the standard textbook measurements of demand elasticity.
3. Marginal revenue is not among them — that is a concept from revenue analysis.
_Source: ICMAI BoS CMA Foundation Paper 4 (Business Economics & Management), Module 1 §1.3 (Theory of Demand) + §Elasticity of Demand, p. 33-46_
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