Re: JNU ECOM2010 ques 31-40

Posted by Arushi :)) on Feb 26, 2014; 7:14am
URL: http://discussion-forum.276.s1.nabble.com/JNU-ECOM2010-ques-31-40-tp7584935p7584939.html

hey in hammond , its given for calculation of elasticity of f/g , we need to subtract elasticity of g from elasticity of f.
so dat way
E{f(x)/x}= E(f(x))- E(x)
We know elasticity of f(x) is 0.5 what about elasticity of a variable with respect to itself? I think it would be 1. because %change in x/ %age change in x = 1
So that way ans should be 1-0.5 = -0.5
I hope i am right :/
Btw thanks sonia... i m really happy to have found such people here :) thanku so much :)