If the elasticity of demand is -2.3 when calculated using the point elasticity method and -3.4 using the arc elasticity method, then
A)you should use the point elasticity.
B)it is OK to use either one.
C)there must be a mistake in the calculations.
D)you should use the arc elasticity.

Question

Quizplus · Accepted Answer

The difference in elasticity values between the point elasticity method (-2.3) and the arc elasticity method (-3.4) does not inherently indicate a mistake or a preference for one method over the other. Both methods are valid but are used in different contexts. Point elasticity is used for precise points on the demand curve, while arc elasticity is used over a range of points, leading to different values.

If the Elasticity of Demand Is -2