Point elasticity, Microeconomics

Assignment Help:

Point Elasticity:

Point elasticity is brought in use when the change in price is quite small, which means. The two points between which elasticity is being measured or calculated essentially collapse on each other. Differential calculus is used to calculate the instantaneous rate of the change of quantity with respect to changes in cost

(dQ/dP) and after this it is multiplied by P/Q, where P and Q are the coat and quantity obtaining at the instant of interest. The formula for point elasticity can be given as:

?=?QxP

? P Q

 

Or this formula can also be written as follows:

?=dQxP

d P Q

 

Where d = infinitely small change in cost.


Related Discussions:- Point elasticity

Health and life expectancy, Health and Life Expectancy: In addition t...

Health and Life Expectancy: In addition to struggling on low income, many people in the developing nations fight a constant battle against malnutrition, disease and ill healt

I am doing micro assignment, how to write the conclusion,i am doing the nik...

how to write the conclusion,i am doing the nike company.

What do you mean by externality, Q. What do you mean by Externality? An...

Q. What do you mean by Externality? An externality exists when the actions of one individual affect the wellbeing of other individuals without any compensation taking place. F

What is development economics, What is development economics? Traditio...

What is development economics? Traditional economics studies the allowance of scarce resources among alternative uses. Development economics seems at the economic, politica

Japanese and American production, What is the graph of the production possi...

What is the graph of the production possibilities frontiers for the American and Japanese economies if American worker can produce 10 tons of grain a year and Japanese worker can p

Inverse market demand curve, Problem: i) The  inverse market demand cur...

Problem: i) The  inverse market demand curve for a Stackelberg leader and follower is given by  P = 10  - Q. If each has  a marginal cost of $4, what will be the equilibrium qu

Indifference curve, explain the properties of indifference curve with the h...

explain the properties of indifference curve with the help of diagrams?

Visit to village panchayat for agricultural based project., related documen...

related documents, photos,paper for permission from court etc.

What is tradeable product, Q. What is Tradeable product? Tradeable:A pr...

Q. What is Tradeable product? Tradeable:A product (a service or good) is tradeable if its purchaser can purchase it far away from the place where it is produced. Most goods (ot

Determine the dividend yield and current stock price, The Bloomington Elect...

The Bloomington Electric Company operates in a stable industry and therefore has predictable dividend growth of 8% per year. The most recent annual dividend was paid yesterday in t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd