Point elasticity, Microeconomics

Point Elasticity:

Point elasticity is brought in use when the change in price is quite small, which means. The two points between which elasticity is being measured or calculated essentially collapse on each other. Differential calculus is used to calculate the instantaneous rate of the change of quantity with respect to changes in cost

(dQ/dP) and after this it is multiplied by P/Q, where P and Q are the coat and quantity obtaining at the instant of interest. The formula for point elasticity can be given as:

?=?QxP

? P Q

 

Or this formula can also be written as follows:

?=dQxP

d P Q

 

Where d = infinitely small change in cost.

Posted Date: 7/19/2012 4:03:50 AM | Location : United States







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

Write discussion on Point elasticity
Your posts are moderated
Related Questions

Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes the principle's expected profits from his business]. There a

illustrate and explain the changing demand gor big Mac using the indifference curves and budget line

A control in economics means a steady profit rate that is enhancing. Thus, after one year you could have £1mill profit then the next year £3mill profit etc.

Hi, Can you help with writing ten pages, each page deferent topics about Karl Marx economic views. It will be in english as a second language. Nothing fancy. Just simple straight

Explain the approach of characterizing the modern economic environment. Modern economics gives various perspectives or angles to seem at real world economic issues. An economic


Two firms, A and B, are planning to bid for a contract of Motorway extension in Mauritius. Suppose: (1) firm B is a newly established company and has already incurred a st

Motives of regional financial institutions: There are mixed motives for the donor countries to provide development assistance to developing nations. While a desire for poverty