Arc elasticity, Microeconomics

Arc Elasticity is defined below:

Arc elasticity measures/calculates the "average" elasticity between two points on the demand curve. The formula is simply given as (change in quantity/change in price)*(average price/average quantity).

As:

 

? = ? Q  ÷   ? P

        Q           P

 

To measure arc elasticity we take average values for both Q and P respectively.

 

 

Posted Date: 7/19/2012 4:04:44 AM | Location : United States







Related Discussions:- Arc elasticity, Assignment Help, Ask Question on Arc elasticity, Get Answer, Expert's Help, Arc elasticity Discussions

Write discussion on Arc elasticity
Your posts are moderated
Related Questions
The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million.  Unfortunately, the costs have been mu

what is the second best?prove the theorem with the help of a diagram?

What is checkable bank deposits?


EDPE 4056: Applied Microeconomics Program in Economics and Education Teachers College, Columbia University Prof. Francisco Rivera-Batiz Problem Set 1 Please answer all of the fol

Determinants of Private Demand - Unemployment Rate Unemployment rates linked to specific courses of study can be useful indicators to determine investment in education. Their


if coast of good A fall by Rs.1 & coast of good B increases by 1 Rs. what will be the effect on budget line

what is the south africas governments standpoint on international trade

You are a member of a problem solving group that is concerned with incidents involving losses with their information system (IS). Let us assume that IS loss events can be grouped i