Finance Junkie
Posts: 89
Joined: Sat Apr 01, 2017 2:12 pm


Postby sanbiz20 » Tue Oct 10, 2017 1:03 pm

For calculating the price elasticity of demand could you please explain why do we use average units of Price & Qty demanded instead of using the initial values of price as Po & qty demanded as Qo.

Finance Junkie
Posts: 981
Joined: Wed Apr 09, 2014 6:28 am

Re: Economics

Postby edupristine » Wed Oct 11, 2017 6:34 am

The price elasticity of demand measures the responsiveness of the quantity demanded or supplied of a good to a change in its price during a period & is computed as the % change in the quantity demanded / % change in price. And the average price & average quantity represent that change over a period of time.

Return to “CFA Level I”


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.