Question

Arc elasticity gives a better measure of point elasticity of a curvilinear demand curve

Answer 1

yes..........................

Answer 2

Arc elasticity gives a better estimate of point elasticity of a curvilinear demand curve as the size of the arc becomes smaller.

• Arc elasticity calculations give the elasticity using the midpoint between two points. the arc elasticity is more useful for larger price changes and gives the same elasticity outcome whether price falls or rises.

There are four methods of measuring elasticity of demand. They are the

1. percentage method,
2. point method,
3. arc method and
4. expenditure method.

• Point elasticity of demand measures the elasticity at a point on demand curve. Mainly it s the ratio of percentage change in quantity demanded of a good to percentage change in its price calculated at a specific point on the demand curve.

Hence,

Yes,Arc elasticity gives a better measure of point elasticity of a curvilinear demand curve as the size of Arc get smaller.

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