Home » Simplify your calculations with ease. » Statistics calculators » Arc Elasticity Calculator Online

# Arc Elasticity Calculator Online

The Arc Elasticity Calculator measures how demand responds to changes in price over a range of prices. It calculates the arc elasticity of demand, which considers the average price and quantity rather than specific points. This makes it useful for analyzing real-world scenarios where prices and quantities vary.

## Formula of Arc Elasticity Calculator

Arc elasticity measures how demand responds to changes in price over a range of prices. The formula is:

where:

• Q1 and Q2 are the initial and final quantities demanded.
• P1 and P2 are the initial and final prices.

This formula provides a more accurate measure of elasticity over a range of values, making it practical for real-world applications.

## Pre-calculated Values Table

To make it easier, here is a table of pre-calculated arc elasticity values for common scenarios:

This table helps you quickly reference elasticity values without needing to calculate each time.

## Example of Arc Elasticity Calculator

Let's go through an example to see how the arc elasticity formula works.

Suppose the price of a product increases from \$10 to \$12, and the quantity demanded decreases from 100 units to 90 units. Using the formula:

Arc Elasticity of Demand = ((90 - 100) / (90 + 100)) / ((12 - 10) / (12 + 10)) = (-10 / 190) / (2 / 22) = -0.0526 / 0.0909 = -0.578

The arc elasticity of demand is -0.578, indicating that the demand is inelastic since the absolute value is less than 1.

## Most Common FAQs

What is the difference between arc elasticity and point elasticity?

Arc elasticity measures elasticity over a range of prices, while point elasticity measures elasticity at a specific point on the demand curve. Arc elasticity is useful for broader analysis, whereas point elasticity is precise for small changes.