Explain the Geometric Method of Measurement of Elasticity
Explain the Geometric Method of Measurement of Elasticity.
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Geometric or Point method: It developed by Marshall. It is used as a measure of the change in quantity demanded in way to a very small change in the price. Under this method we can measure the elasticity at any of given point on a straight line demand curve using the given formula as:ED = Lower section of the Demand curve/Upper section of Demand curve.
In the given diagram, AB is a straight line demand curve along with P as its middle point. Further this is assumed as AB is 6 cm. so,
ED = PB/PA=3/3=1; at point P
ED = P1B/P1A= 4.5/1.5= 3=>1; at point P1
ED = AB/A= 6/0= α (infinity); at point A
ED = P2B/P2A = 1.5/4.5 = 1/3 = <1; at point P2
ED = B/BA = 0/6 = 0; at point B
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Demand for labor of this purely competitive firm in given figure corresponds to: (1) line segment ab. (2) line segment bd. (3) line segment be (4) line segment df. (5) line segment dg. Q : Occurrence of General Training General General training occurs while a: (w) secretary learns a new office procedure. (x) handyman learns to drive a semi-truck. (y) messenger learns the company’s in-house mail route. (z) navy recruit learns how to repair a guided missile.
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For a firm hiring through a purely competitive labor market, in that case the supply of labor is: (w) greater than the MRC. (x) less than the MRC. (y) the same as the MRC. (z) vertical to parallel the wage rate. Discover Q & A Leading Solution Library Avail More Than 1415610 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1922347 Asked 3,689 Active Tutors 1415610 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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