To the left is the **arc elasticity** version of the **own price elasticity of demand**. Let's recompute our last example using the arc elasticity formula. As before, price drops from 12 to 8 and quantity demanded rises from
1 to 2, giving the results shown to the right. A quick check will confirm that the formula gives the same result if price falls from 12 to 8 or increases from 8 to
12. This is a nice characteristic of the arc elasticity formula. The somewhat cumbersome
nature of the formula is its main drawback.

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