Is demand elasticity the second derivative of a demand curve? - derivative pricing models
Since the derivative of the curve to end the amendment does not stretch (% change in the volume and the% change in price), the second derivative.
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Tuesday, December 29, 2009
Derivative Pricing Models Is Demand Elasticity The Second Derivative Of A Demand Curve?
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1 comments:
No, the first derivative. the derivative of a curve is the slope of the curve. Elasticity of demand is the slope of the demand curve.
Reason that the elasticity of demand is represented as% change in the volume and the% change in price that it is the simple arithmetic calculation of the estimated elasticity of demand.
but if used, computer science, received only the first derivative. If you do this in order to calculate the elasticity, then compare with the method of calculation, the values should be somewhere in the area of the law. but the method of calculation is more accurate.
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