Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,894,331,729 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Arc Elasticity

   Also found in: Wikipedia 0.01 sec.
Arc Elasticity
A variable's elasticity (or relative stability of a variable with respect to another variable's change) when the two variables are between two given points. One calculates the arc elasticity by dividing the percentage change of one variable by the percentage change of the other. This is used to find a more accurate measure of the price elasticity of demand.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
No references found
 
The typical solution to this ambiguity problem is obtained by calculating an arc elasticity, where the percentage change is taken relative to the average of the "beginning" and "ending" values.
Interpreting the regression coefficient in semilogarithmic functions: ... by Krautmann, Anthony C.; Ciecka, James / Indian Journal of Economics and Business
Arc elasticity equals the percentage change in energy use relative to the average of the new and old values for both quantity (Q) and price (P), as depicted in the following equation: Arc Elasticity={[(Q2-Q1)/(Q2+Q1)]/2}/{[(P2-P1)/(P2+P1)]/2} In the example shown in Figure 1, a rise in the price from $0.
Demand response and advanced metering: California's experiment shows ... by Faruqui, Ahmad; Earle, Robert / Regulation
Introduction In their recent article in this journal, "Restrictions of Allen's Arc Elasticity of Demand; Time to Consider the Alternative?
Allen's arc vs. assumed isoelasticity, pedagogical efficacy vs. ... by Phillips, Wm. A. / American Economist
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.