Q.
1
Statement (I): Point price elasticity of demand in terms of marginal and average revenues can be measured with the following formula:
AR___
AR-MR
Statement (II): The pint price elasticity of demand is the product of the slope of the demand function and the ratio between corresponding price and quantity.
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A
Both the statements are correct
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B
Both the statements are incorrect
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C
Statement (I) is correct while statement (II) is incorrect
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D
Statement (I) is incorrect while statement (II) is correct