Percentage method of measuring elasticity of demand
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Geometric method of measuring elasticity of demand.
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Meaning
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In the percentage method, the elasticity of supply is measured by
dividing the percentage change in the quantity supplied by the percentage
change in price.
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In the geometric method, the elasticity of supply is measured at any
given point on a linear as well as non – linear supply curve.
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Formula
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Es= (Percentage change in quantity supply) ÷ (Percentage
change in the price)
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Es = (Intercepts from a given point on X – axis) ÷ (Quantity
supplied at a given price)
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Percentage method of measuring elasticity of supply and Geometric method of measuring elasticity of supply.
