Arc Elasticity Overview, Formula, Examples, Apps
Ipso facto, any point below the mid-point towards the A’-axis will show elastic demand. Elasticity becomes zero when the demand curve touches the X -axis. Price decreases from $8 to $6, quantity demanded increases from 20 units to 40 units. Price increases from $6 to $8, quantity demanded decreases from 40 units to 20 units. […]