
ARBITRATION: Intervention of an impartial third party to settle disputes between two others. The decisions of this third party  the arbitrator  are legally binding, much like the ruling of a judge in a court of law. Arbitration is commonly used to interpret a collective bargaining agreement between unions and employers. Much like a judge (in some cases it is a judge) an arbitrator determines how a given union and employer conflict stacks up against the terms of existing agreement. Note that an arbitrator doesn't try to decide what's "best, "fair," or mutually agreeable to both sides  as would be the case with mediation  but only what's in line with the existing agreement.
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, 20002024. [Accessed: June 15, 2024]. Check Out These Related Terms...       Or For A Little Background...       And For Further Study...      
Search Again?
Back to the WEB*pedia



BLACK DISMALAPOD [What's This?]
Today, you are likely to spend a great deal of time at the confiscated property police auction hoping to buy either a coffee cup commemorating the 2000 Olympics or a birthday gift for your grandmother. Be on the lookout for letters from the Internal Revenue Service. Your Complete Scope
This isn't me! What am I?


Lombard Street is London's equivalent of New York's Wall Street.


"Be kind and merciful. Let no one ever come to you without coming away better and happier."  Mother Teresa of Calcutta, humanitarian


GDI Gross Domestic Income


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

