Question

When there are infinitely small changes in price and demand, then the ______ method is used.

पर्याय

• Proportionate

• Geometric

• Percentage

• All of the above

Answer 1

When there are infinitely small changes in price and demand, then the Geometric method is used.

Explanation:

Prof. Marshall proposed the geometric approach, which is used to calculate elasticity at a certain point on the demand curve.

1. The 'Geometric Method' is employed when there are infinitely small changes in price and demand.
2. The 'Graphic Procedure,' 'Point Method,' or 'Arc Method' are all names for this method. At different places on the same straight line demand curve, the elasticity of demand (Ed) varies.
3. To calculate Ed at any given position, divide the lower component of the curve from that place by the upper portion of the curve from the same location.