Point Elasticity
Definition
Elasticity computed at a specific price-quantity point using calculus. Contrast with arc elasticity.
Example
At (P=10, Q=100) with slope dQ/dP = −2, point elasticity is −0.2.
Elasticity computed at a specific price-quantity point using calculus. Contrast with arc elasticity.
At (P=10, Q=100) with slope dQ/dP = −2, point elasticity is −0.2.