Question

Distinguish between :

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

Answer 1

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