Calculating percentage changes relative to the average value of each variable between two points is:
A) slope elasticity.
B) arc elasticity.
C) median elasticity.
D) differential elasticity.

Question

Quizplus · Accepted Answer

Arc elasticity measures the percentage change in a variable relative to the average value of that variable between two points. It is used when there is a significant change in price or quantity along the demand curve. Therefore, B is the best choice.

Calculating Percentage Changes Relative to the Average Value of Each