Arc Elasticity

In mathematics and economics, the arc elasticity is the elasticity of one variable with respect to another between two given points. It is the ratio of the percentage change of one of the variables between the two points to the percentage change of the other variable. It contrasts with the point elasticity, which is the limit of the arc elasticity as the distance between the two points approaches zero and which hence is defined at a single point rather than for a pair of points.

Read more about Arc Elasticity:  Formula, Application in Economics

Famous quotes containing the words arc and/or elasticity:

    You say that you are my judge; I do not know if you are; but take good heed not to judge me ill, because you would put yourself in great peril.
    —Joan Of Arc (c.1412–1431)

    One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.
    William Howard Taft (1857–1930)