The formula for the arc price elasticity can be written (where AQ denotes the change in Q) as: h = [AP/(P₁+P₂)]/[AQ/(Q₁ + Q₂)]. h =[AQ/(P₁+ P₂)]/[AP/(Q₁ + Q2)]. h = [AQ/(Q₁ + Q₂)]/[AP/(Q1 + Q2)]. h = [AQ /(Q₁ + Q₂)]/[AP/(P₁ + P2)].

The formula for the arc price elasticity can be written (where AQ denotes the change in Q) as: h = [AP/(P₁+P₂)]/[AQ/(Q₁ + Q₂)]. h =[AQ/(P₁+ P₂)]/[AP/(Q₁ + Q2)]. h = [AQ/(Q₁ + Q₂)]/[AP/(Q1 + Q2)]. h = [AQ /(Q₁ + Q₂)]/[AP/(P₁ + P2)].

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 12E

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Question

The formula for the arc price elasticity can be written
(where AQ denotes the change in Q) as:
h=[AP/(P₁ + P₂)]/[AQ/(Q₁ + Q₂)].
h=[AQ/(P₁+P₂)]/[AP/(Q₁ + Q₂)].
h=[AQ/(Q₁ + Q₂)]/[AP/(Q₁ + Q2)].
h=[AQ/(Q₁ + Q₂)]/[AP/(P₁ + P₂)].

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