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Arc elasticity

Economics

Why do we use arc elasticity instead of point elasticity , please me with an practical example, what is the advantage of arc elasticity over point elasticity

nisam M

CA Final

★ 23K+

14-Feb-21 02:47

435

Answers (1)

Arc elasticity measures elasticity at the midpoint between the two selected points. Hence it's more accurate rather than point elasticity which only calculates elasticity at one point on the curve. For more details watch our videos on elasticity of demand in CA Foundation. It's been explained with example.