In our example, then, the arc elasticity of demand would be:
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4.1. Own-Price Elasticity of Demand are then earning €9.90. So, by receiving first a 10 percent raise and then a 10 percent cut in wage, you are worse off. The reason for this is that we typically use the original value as the base, or denominator, for calculating percentages.) <span>In our example, then, the arc elasticity of demand would be:
There are two special cases in which linear demand curves have the same elasticity at all points: vertical demand curves and horizontal demand curves. Consider a vertical d
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