Answer-Which among the following statement is INCORRECT?

The coefficient of elasticity of demand measures the responsiveness of quantity demanded to a change in price, calculated as the percentage change in quantity divided by the percentage change in price dqdp. At the intersection point, elasticity differs because elasticity depends on slope and price-quantity ratio, which differ for different curves. The formula for point elasticity is EP At the point of intersection, the price p and quantity q are identical for both curves. However, since the curves intersect, they must have different slopes. The flatter curve has a higher responsiveness, making it more elastic than the steeper curve at that specific point.

Question

Which among the following statement is

INCORRECT?

A On a linear demand curve, all the five forms of elasticity can be depicted

B If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.

C If two demand curves are linear, and parallel to each other then at a particular price the coefficient of elasticity would be different on different demand curves

D The price elasticity of demand is expressed in terms of relative not absolute, changes in Price and quantity demanded

E None of these

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Which among the following statement is

Solution