Enter the demand and price of a good or service at two different points to calculate the arc elasticity.

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## Arc Elasticity Formula

The following formula is used to calculate the arc elasticity.

- Where Ep is the arc elasticity
- Q is the quantity of goods sold
- P is the price of the good at the same time.

## Arc Elasticity Definition

Arc elasticity is a measure of how the relationship between the demand and price of a good or service changes over time with a change in either of those metrics.

## Arc Elasticity Example

How to calculate an arc elasticity?

**First, determine the quantity.**Calculate the initial and final quantities.

**Next, determine the price.**Calculate the initial and final price.

**Finally, calculate the arc elasticity.**Calculate the arc elasticity using the equation above.

## FAQ

**What is arc elasticity?**

Similar to price elasticity, arc elasticity measures the relationship with how the demand for a good or service changes with a change of price.