We may have some applications of the above method of

measuring elasticity on demand curves of different

shapes:
Y

Price

………………………
Q V

X
O M S
Quantity
(a) Two straight line demand curves which are neither
parallel nor intersecting. This method of measuring
elasticity helps to compare the elasticity of demand
curves, and shows the flexibility of the notion that
elasticity depends upon the slope of a curve. In the figure
we have taken two straight line demand curves NM and
NS. If we draw a dotted line passing through these curves
and touching the Y-axis at point T, the elasticity at point
Q on the NM curve according to the point formula is:
 ,being sides of right angle ∆ONM

Similarly, elasticity at point V on the NS curve is

Thus, elasticity is equal on both points Q and V.

 Y

Price Q
N T

X
O q q1 M

Quantity

Figure 4
(b)Two parallel straight line demand curves. Let NM and RS be
two parallel straight line demand curves and draw a line PT
which passes through these straight lines at point Q and T.
According to the point formula, elasticity at point Q on the NM
curve is being sides of right angle ∆ONM. Similarly,
elasticity at point T on the RS curve , , being sides of
right angle ∆ORS. Since, therefore . It means
greater elasticity at point Q on line NM than at point T on line
RS. In other words, the curve which is nearer to the origin has
greater elasticity than which is farther from origin.
 Y

R
Price K

X
O M S

Quantity

Figure 4