Price Elasticity (Midpoint Method)

Drag points A and B to see how the elasticity changes. (Point M is the midpoint between A and B.)


\color{ {{ color('diff2') }} }{\% \Delta Q = \frac{ Q_B - Q_A }{ Q_M } = \frac{ {{params.x1 | number:0}} - {{params.x2 | number:0 }} }{ {{model.xAvg | number:0 }} } = {{model.xPercentDiff | percentage:0 }}}


\color{ {{ color('diff1') }} }{\% \Delta P = \frac{ P_B - P_A }{ P_M } = \frac{ {{params.y1 | number:0 }} - {{params.y2 | number:0 }} }{ {{model.yAvg | number:0 }} } = {{model.yPercentDiff | percentage:0 }}}


\epsilon_{Q,P} = \frac{\% \Delta Q}{\% \Delta P} = \frac{ \color{ {{ color('diff2') }} }{ {{model.xPercentDiff | percentage:0 }} }} { \color{ {{ color('diff1') }} }{ {{model.yPercentDiff | percentage:0 }} } } = {{ model.elasticityNumber() }}


\left| \epsilon_{Q,P} \right| = {{ model.elasticityComparator}} \Rightarrow \text{ {{ model.elasticityWord }}}

Copyright (c) Christopher Makler / econgraphs.org