Question

Which of the following is not the method of measuring elasticity of demand?
Answer:
O Unitary elasticity method
O Total revenue method
O
Point method
O Arc elasticity method​

Answer 1

Answer:

Unitary Elasticity Method

Explanation:

Unitary elastic demand is a type of demand which changes in the same proportion to its price. It means that the percentage change in demand is exactly equal to the percentage change in price. In the unitary demand, the product elasticity is negative as the product price decrease does not help to generate more revenue.

The formula for calculating elasticity is: Price Elasticity of Demand=percent change in quantity percent change in price Price Elasticity of Demand = percent change in quantity percent change in price .

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