1.

Arc elasticity is the coefficient of the price elasticity of

demand between two points along the demand curve. It is
often used in the context of the law of demand to measure
the inverse relationship between price and demand. Arc
elasticity measures the sensitivity of demand relative to the
mid-point rather than the original point. It gives the same
value for price increases and decreases of equal amounts.
Arc elasticity is used in non-uniform pricing to measure the
elasticity of demand and price products in a way that
maximizes profits. Arc elasticity is useful for larger price
changes. While point elasticity is the elasticity at one point
along the demand curve. It measures the demand at any
point of the curve when the demand curve is linear.Useful
when there are small changes in neighborhood of point.