Percentage method of measuring elasticity of demand

Geometric method of measuring elasticity of demand.

Meaning


In the percentage method, the elasticity of supply is measured by
dividing the percentage change in the quantity supplied by the percentage
change in price.

In the geometric method, the elasticity of supply is measured at any
given point on a linear as well as non – linear supply curve.

Formula


E_{s}= (Percentage change in quantity supply) ÷ (Percentage
change in the price)

E_{s} = (Intercepts from a given point on X – axis) ÷ (Quantity
supplied at a given price)
