Which of these is the correct expression for Arc Elasticity?

CA Foundation · Business Economics · PYQS · January 2026
Which of these is the correct expression for Arc Elasticity?
(A) A. (P2-P)/(P2+P1) (Q2+Q1)/(Q2-Q)
(B) B. (P2P) (P2+P₁)/(Q2+Q1) × (Q2-Q1)
(C) C. (P2+P1)/(P2-P) × (Q2-Q1)/(Q2+Q1)
(D) D. (P2+P1) (P2-P1)/(Q2-Q1) × (Q2+Q1)

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. (P2+P1)/(P2-P) × (Q2-Q1)/(Q2+Q1)

Topics: Theory of Demand and Supply

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