At the center of a liner line, E = dQ/dP * P/Q =2* (2/4) =1E = dQ/dP* P/Q = - 2* (2/4) = - 1At P = 0 and Q = 8, E = - 2 * 0/8 = 0. Demand is completely inelasticA this pointDemand is completely inelastic. A this point the consumer has already consumed the maximum possible. So at this point, the consumer will not buy any extra for an infinitesimal change in P.10
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CtiElti itComputing ElasticityElasticity may be computed for a changeElasticity may be computed for a change from one point on the D curve to another point on the same curve (Arc Elasticity).Price Elasticity% Q==(Q2– Q1)/Q1of Demand, ED% P(P2– P1)/P1Another approach is to divide the changeAnother approach is to divide the change by the average of two points—(Q1+ Q2)/2 instead of Q1and (P1+ P2)/2 instead of P1.11