Economics20815 marksPrice elasticity measurement by arc method
How price elasticity is measured by arc method? Explain.
How price elasticity is measured by arc method? Explain. [5]
The arc method (also called the midpoint method) measures price elasticity of demand over a range or arc of the demand curve, rather than at a single point. It provides a more accurate elasticity measurement when there is a significant change in price and quantity. The arc method uses the followi...