Method to Measure Elasticity of Demand on a Straight Line Demand Curve
There are various methods to measure elasticity of demand at different points on a straight line demand curve. One commonly used method is the geometric method, which involves calculating the price elasticity of demand at various points on the curve.

Steps to Measure Elasticity of Demand Using Geometric Method:
- Identify Two Points: First, you need to identify two points on the demand curve where you want to measure the elasticity of demand. These two points will help you calculate the slope of the demand curve.
- Calculate Slope: Next, calculate the slope of the demand curve between the two points using the formula: (Change in Quantity / Change in Price). This will give you the slope of the demand curve at that particular point.
- Calculate Price Elasticity: Once you have the slope of the demand curve, you can then calculate the price elasticity of demand at that point using the formula: (Percentage Change in Quantity Demanded / Percentage Change in Price).
- Interpret the Results: Based on the calculated price elasticity of demand, you can determine whether demand is elastic, inelastic, or unitary at that specific point on the demand curve.
By following these steps and using the geometric method, you can effectively measure the elasticity of demand at various points on a straight line demand curve. This method provides a quantitative measure of how responsive quantity demanded is to changes in price at different points along the demand curve.