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Point Elasticity of Demand
- For large price changes (such as 20%), value of elasticity will depend upon where price and quantity lies on demand curve.
- Point elasticity measures elasticity at the point on demand curve.
- The formula for it is:
In the table below are given the output (X), T.C., and Price for a firm. Complete the following table, and then answer the questions at the bottom of the table. X T.C P=A.R
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