
ORIGIN: In a graph, this is point of intersection between the X and Y axes. This intersection point is at the zero values for both axes. This doublezero is the "starting point" for plotting points in the coordinate space established by the two axes.
Visit the GLOSS*arama




POINT ELASTICITY: The relative responsiveness of a change in one variable (call it B) to an infinitesimally small change in another variable (call it A). The notion of point elasticity typically comes into play when discussing the elasticity at a specific point on a curve. Point elasticity can be calculated in a number of different ways. Sophisticated economists, using sophisticated mathematical techniques (better known as calculus) calculate point elasticity by using derivatives. Derivatives are calculus talk for infinitesimally small changes. The formula for calculating point elasticity using calculus is given as:The symbol that looks like a backward six (∂) is the mathematical notation for a derivative, or infinitesimally small change. The first term on the righthand side of this formula is the percentage change in variable B and the second term is the percentage change in variable A.Unsophisticated folks can also calculate point elasticity without the use of sophisticated calculus. This is done with the midpoint elasticity formula, presented here: midpoint elasticity  =  (B2  B1) (B2 + B1)/2  ÷  (A2  A1) (A2 + A1)/2 
The first term on the righthand side of the equation is the percentage change in variable B. The second term is the percentage change in variable A. The individual items are interpreted as this: A1 is the initial value of A before any changes, A2 is the ending value after A changes, B1 is the initial value of B before any changes, and B2 is the ending value after B changes.This midpoint elasticity formula actually calculates the average or arc elasticity of the entire line segment. However, it also calculates the point elasticity for the midpoint of a line segment.
Recommended Citation:POINT ELASTICITY, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 20002018. [Accessed: September 20, 2018]. Check Out These Related Terms...       Or For A Little Background...       And For Further Study...      
Search Again?
Back to the WEB*pedia



RED AGGRESSERINE [What's This?]
Today, you are likely to spend a great deal of time touring the new suburban shopping complex wanting to buy either a solid oak entertainment center or a remote controlled ceiling fan. Be on the lookout for bottles of barbeque sauce that act TOO innocent. Your Complete Scope
This isn't me! What am I?


Two and a half gallons of oil are needed to produce one automobile tire.


"No amount of business school training or work experience can teach what is ultimately a matter of personal character. "  Truett Cathy, ChickfilA Inc. founder


MGF Moment Generating Function


Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback

