What is the problem in using arc elasticity? How can this problem be r – InterviewSolution

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1.	What is the problem in using arc elasticity? How can this problem be resolved?
Answer» The arc elasticity coefficient should be used with caution because the measure of arc elasticity between any two points on a demand curve produces two different elasticity coefficients for the same fall and rise in price. The arc elasticity coefficient varies between the same two finite points on a demand curve when the direction of change in price is reversed. Therefore, it is the cause of misinterpretation.

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