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in Price Elasticity of Demand by (63.4k points)

What is the problem in using arc elasticity? How can this problem be resolved?

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The arc elasticity coefficient should be used with caution because the measure of arc elasticity between any two points on a demand curve produces two different elasticity coefficients for the same fall and rise in price. The arc elasticity coefficient varies between the same two finite points on a demand curve when the direction of change in price is reversed. Therefore, it is the cause of misinterpretation.

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