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

What is optimal choice of consumer according to behavior, What is optimal c...

What is optimal choice of consumer according to consumer behavior? Consumer's Optimal Choice: In the fundamental problem of preference maximization, the set of affo

Miss, explain how scarcity impacts choice 2.expain the three steps process ...

explain how scarcity impacts choice 2.expain the three steps process in economic analysis

Concepts of economic development - economic growth, Normal 0 f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Approach of characterizing modern economic environment, Explain the approac...

Explain the approach of characterizing the modern economic environment. Modern economics gives various perspectives or angles to seem at real world economic issues. An economic

Computers, During the 1990s, technological advance reduced the cost of comp...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Industrial policy, Industrial Policy: Government policies which are aimed a...

Industrial Policy: Government policies which are aimed at fostering the domestic development of particular desirable or productive industries, in order to enhance productivity, cre

GNP, why use GNP in macroeconomichs analysis

why use GNP in macroeconomichs analysis

Oligopoly, How to calculate new profit earn by a firm in oligopoly if anoth...

How to calculate new profit earn by a firm in oligopoly if another firm cheat

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