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P
ED numerator (tủ số) = change in Q ÷
average Q
ED denominator (mẫu số) = change in P ÷
average P
change in P
average P
0 change in Q Q
average Q
Why is a linear demand curve elastic above the mid-point?
P
ED numerator = change in Q ÷ average Q
ED denominator = change in P ÷ average P
change in P
Since numerator > denominator, ED > 1
Demand is elastic between these two points
average P
0
change in Q
Q
average Q