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Arc elasticity of demand (view source)
Revision as of 02:27, November 23, 2012
, 02:27, November 23, 2012Reverted edits by MorganP (talk) to last revision by MPeters
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).
The '''arc elasticity of demand''' is a way of accurately calculating [[elasticity]] and is also known as the '''midpoint method'''.
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):