Tag Archives: Arc Elasticity: How to Calculate

Arc Elasticity: How to Calculate, Difference with Point Elasticity

What it is: Elasticity arc (arc elasticity) is a measure of elasticity based on the midpoint of the two points. If you measure the price elasticity of a product, it is the percentage change in quantity demanded divided by the percentage change in price between two points. The arc elasticity produces the same elasticity value whether the price moves… Read More »