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What is the elasticity between the mid point and the upper exteme point of a straight line continous demand curve meeting the two axis


nisam M

nisam M

CA Foundation

10K+

28-Feb-21 17:37

22

Answers (3)

A straight line demand curve will have a different elasticity at each point on it. If the demand curve is linear (straight line), it has a unitary elasticity at the midpoint. Any point above the midpoint has elasticity greater than 1, (Ed > 1). Below the midpoint elasticity is less than 1. (Ed < 1).


sudha reddy

sudha reddy

Moderator

01-Mar-21 09:39

mam i have confusion in point elaticity and arc elasticity , can u elaborate it please

Arc elasticity of demand (arc PED) is the value of PED(Price elasticity of demand) over a range of prices, Point elasticity is the (PED) price elasticity of demand at a specific point on the demand curve instead of over a range of it.


ruchi lahoti

ruchi lahoti

Moderator

05-Mar-21 10:15

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