Which of the following is the method of measuring elasticity of demand when change in
price of a commodity is substantial ?
(A) Percentage Method
(B) Point Method
(C) Arc Method
(D) None of these
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Which of the following is the method of measuring elasticity of demand when change in
price of a commodity is substantial ?
(A) Percentage Method
(B) Point Method
(C) Arc Method
(D) None of these
(C)Arc Methord
Answered by
1
Answer:
Arc method
Explanation:
The measure of elasticity of Demand between two finite points is known as Arc Elasticity. It is relevant where change in price and consequent change in demand is substantial. Arc elasticity is a measure of average of responsiveness of the quantity demanded to a substantial change in price.
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