Which one of the following elasticities takes the average of prices and quantities:

Question:

Which one of the following elasticities takes the average of prices and quantities:

A.

Point elasticity of demand

B.

Arc elasticity of demand

C.

Income elasticity of demand

D.

Cross elasticity of demand

Answer» b. Arc elasticity of demand

Note: The above multiple-choice question is for all general and Competitive Exams in India

The equilibrium price and quantity, given the inverse demand and supply functionsbp D =-3q + 30 and pS = 2q – 5

Question:

The equilibrium price and quantity, given the inverse demand and supply functionsbp D =-3q + 30 and pS = 2q – 5

A.

p = 9 and q = 7

B.

p = 10 and q = 7

C.

p = 9 and q = 8

D.

p = 7 and q = 9

Answer» a. p = 9 and q = 7

Note: The above multiple-choice question is for all general and Competitive Exams in India