Calculate the arc elasticity if P1 = ₹ 15, P2 = ₹ 20, Q1 = 50 units, and Q2 = 75 units.

CA Foundation · Business Economics · PYQS · May 2026
Calculate the arc elasticity if P1 = ₹ 15, P2 = ₹ 20, Q1 = 50 units, and Q2 = 75 units.
(A) A. 1.4
(B) B. 1.2
(C) C. 2.1
(D) D. 1.5

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. 1.4

Topics: Theory of Demand and Supply

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