Question

What are the methods of measuring Elasticity of demand?

Answer 1

The main method to check the elasticity....

Answer 2

There are four methods in calculating the elasticity of demand.

The first is the percentage method where the elasticity is measured by its coefficient .

The quantity of a commodity that is demanded results from the percentage of change in price. If the quantity demanded is elastic then Ep is more than 1, if the Qd is inelastic then Ep is less than 1.

If quantity is equal then Ep equals

1. Professor Marshal devices of calculating the elasticity by measuring it on a point curve.

This came to be known as the Point method.

The third is known as the arc method where arc elasticity refers to the measurement of the average responsiveness to the price change that is exhibited by a demand curve.

The last one refers to the total outlay method.