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Geometric method is used to find out theChoose one optionArc elasticity of demandCross price elasticityIncome elasticity of demandPoint elasticity of demand

Question

Geometric method is used to find out the

Choose one option

  • Arc elasticity of demand
  • Cross price elasticity
  • Income elasticity of demand
  • Point elasticity of demand
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Solution

Answer

The correct option that can be determined using the geometric method is Point elasticity of demand.

Explanation

Point elasticity of demand refers to the responsiveness of quantity demanded to a change in price at a particular point on the demand curve. The geometric method involves drawing a tangent line at a specific point on the demand curve to calculate the slope, which then helps in determining the point elasticity.

In contrast, arc elasticity of demand calculates elasticity over a range of prices and quantities and typically uses the midpoint formula, while cross-price elasticity and income elasticity of demand relate to shifts in demand due to changes in the price of related goods and consumer income, respectively. These are not primarily determined through the geometric approach.

Thus, Point elasticity of demand is the choice that aligns with the use of geometric methods.

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Similar Questions

Geometric method is used to find out theChoose one optionArc elasticity of demandCross price elasticityIncome elasticity of demandPoint elasticity of demand

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The market demand curve for a monopolist is typically: A. horizontal B. unit elastic C. perfectly elastic at market price D. downward-sloping

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