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
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.
Similar Questions
Geometric method is used to find out theChoose one optionArc elasticity of demandCross price elasticityIncome elasticity of demandPoint elasticity of demand
YouIf demand is given by q=5P ^-2 where q is quantity demanded and P is price, what isthe price elasticity of demandA) -0.5B) -5C) -2.5D) -2E) -0.4
Ian's utility function is given by u = x1x2. His cross-price elasticity of demand for x1 with respect to p2 will be:
The market demand curve for a monopolist is typically: A. horizontal B. unit elastic C. perfectly elastic at market price D. downward-sloping
If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then at point P2 an estimate of the point price elasticity equals:a.-0.12b.-4.25c.-6d.-2.5
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.