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Arc elasticity of demand (view source)
Revision as of 16:37, November 17, 2012
, 16:37, November 17, 2012Citation
The '''arc elasticity of demand''' is a way of accurately calculating [[elasticity]] and is also known as the '''midpoint method'''.
The '''arc elasticity of demand''' is a way of accurately calculating [[elasticity]] and is also known as the '''midpoint method''' (for example in [[Greg Mankiw]]'s introductory texbook).
Elasticity measures percentage change in one variable (usually quantity demanded) in response to a percentage change in another variable (usually price):
Elasticity measures percentage change in one variable (usually quantity demanded) in response to a percentage change in another variable (usually price):