What's it: Arc elasticity is a measure of elasticity based on two given points. Suppose you measure the own-price elasticity of demand. In that case, it is the percentage change in quantity demanded divided by the percentage change in price
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What's it: Arc elasticity is a measure of elasticity based on two given points. Suppose you measure the own-price elasticity of demand. In that case, it is the percentage change in quantity demanded divided by the percentage change in price