Learning Contents:                                                              ·          Introduction to Arc Elasticity of Demand ·          Arc Elasticity of Demand is an improvement over the Proportionate method ·          Practical Problems Based on Arc Elasticity of Demand ·          Difference between Proportionate method and Arc Elasticity Method Introduction to Arc Elasticity of Demand (Midpoint method) Arc elasticity of demand measures the elasticity between two price (or two points on the demand curve) using the midpoint between the two curves. This method uses the average of both price and both quantity in the denominator (base) for finding the elasticity unlike the proportionate method that uses the initial price and initial quantity in the denominator (base). Therefore, when using arc elasticity, we need not be worried about which point is the starting point and which point is the ending point since it gives the same results whether price rises or falls. The