Statement (I): Point price elasticity of demand in terms of marginal and average revenues can be measured with the following formula:



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.


  • A

    Both the statements are correct

  • B

    Both the statements are incorrect

  • C

    Statement (I) is correct while statement (II) is incorrect

  • D

    Statement (I) is incorrect while statement (II) is correct