point method
Margarine has a measured IED of -0.37.
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
1) Point elasticity is measured by the ratio of the lower segment of the curve below the given point to uppa segment the super part of the curve above the point. 2) Arc elasticity is measured by the use of mid point between the old & the new figures in the case of both prine and qualitiy demonded.
According to this method the degree of elasticity of demand is measured by comparing firm's revenue from consumer's total outlay on the goods before the change in the price with after the change in the price.
point method
show how the price elasticity of demand is graphically measured along a liner demand curve?
Margarine has a measured IED of -0.37.
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
1) Point elasticity is measured by the ratio of the lower segment of the curve below the given point to uppa segment the super part of the curve above the point. 2) Arc elasticity is measured by the use of mid point between the old & the new figures in the case of both prine and qualitiy demonded.
According to this method the degree of elasticity of demand is measured by comparing firm's revenue from consumer's total outlay on the goods before the change in the price with after the change in the price.
Unitary elasticity is when the price elasticity of demand is exactly equal to one.
distinguish between price elasticity of demand and income elasticity of demand
Price elasticity can be precisely measured by dividing the percentage change on quantity demanded by the percentage change in price that caused it. Thus e can measure price elasticity by using the formula Price elasticity = Percentage change in quantity demanded ÷ percentage change in price
I am at a loss for the answer please help me.
there are three methods of measuring elasticity of demand
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.