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).



? = ? 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

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