Arc elasticity is defined belowarc elasticity, Ask an Expert

Economics

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.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9504451

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