CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics: Questions 1 of 523

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

Essay Question▾

Describe in Detail

Explain the geometric method of measuring price elasticity of demand.

Explanation

In geometric method we measure elasticity of demand at different points on demand curve. In this method elasticity of demand at any point on straight line demand curve is ratio of lower segment and upper segment of demand curve.

It is represented as:

=

price elasticity of demand

Price Elasticity of Demand

This iamge is of price elasticity of demand

In this figure Point A represent = =0

Point B represent = = infinite (∞)

Point D represent = = 1

Point E represent = > 1

Point F represent = < 1

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