Extended data:
Arc elasticity is the reaction degree of demand change between two points on the commodity demand curve to price change. Arc elasticity emphasizes the change on the arc, so q and p on the arc are the average values before and after the change: arc elasticity ε = (δ q/q)/(δ p/p).
Arc elastic formula
Elasticity has related but completely different meanings in different fields:
(1) In physics and mechanics, elasticity theory actually describes how objects move or deform under the action of external forces.
In physics, elasticity refers to the property that an object is deformed under the action of an external force and can recover its original size and shape when the external force is removed.
The external force on the object is within a certain limit, and after the external force is removed, the object can restore its original size and shape; Exceeding the limit, the external force cannot be restored to its original state after withdrawal. This limit is called elastic limit (see tensile and compressive deformation of elastomer). The elastic limit of the same object is not fixed, but decreases with the increase of temperature.
(2) In economics, the concept of elasticity was put forward by alfred marshall, which refers to the property that one variable changes in proportion to another variable. Indicates the sensitivity of the dependent variable to the change of the independent variable.
Arc elasticity
C point elasticity
The concept of elasticity can be applied to all variables with causality. The variable as the cause is usually called the dependent variable, and the quantity changed by it is called the dependent variable. For example, there is a relationship between the dependent variable x and the dependent variable y=f(x), then the x elasticity of y is:
Arc elasticity
Arc elasticity
Elasticity in economics is based on demand elasticity, which is a collection of income elasticity and other elasticity. The concept of demand elasticity is used to describe the characteristics of demand curve. That is, it is used to describe the influence of price change on demand-the scope of demand expansion when price changes. When dealing with demand curve, one of the most important reasons for applying the concept of elasticity is that it provides the most appropriate method to reveal the change of total income.
References:
Arc elasticity-Baidu Encyclopedia