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Distinguish Between :Percentage Method of Counting Elasticity of Demand and Geometric Method of Counting Elasticity of Demand. - Economics

ConceptSupply Curve and Schedule

Question

Distinguish between :

Percentage method of counting elasticity of demand and Geometric method of counting elasticity of demand.

Solution

 Basis of Difference Percentage method of counting elasticity of demand Geometric method of counting elasticity of demand Method $E_d = \frac{\text { Percentage change in demand}}{\text { Percentage change in price}}$ $E_d = \frac{\text { Lower segment of the demand curve}}{\text { Upper segment of the demand curve}}$ Also known as Arithmetic method Point elasticity method
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2012-2013 (March) (with solutions)
Question 3.1.3 | 2.00 marks

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Solution Distinguish Between :Percentage Method of Counting Elasticity of Demand and Geometric Method of Counting Elasticity of Demand. Concept: Supply Curve and Schedule.
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