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Class 11 · Bangla Version · Economics

Markets, demand and supply

Compare an initial-base elasticity with a midpoint measure.

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Learn the idea

Price elasticity compares proportional quantity change with proportional price change. An initial-base calculation depends on direction; the midpoint method divides each change by the average of its starting and ending values. Neither calculation establishes causation by itself.

Worked example

Price10→12 and quantity100→80 give initial-base elasticity−20%/20%=−1. Midpoint quantity change−20/90 and price change2/11 give−11/9, about −1.22. Both describe this finite comparison with different bases.

  1. State the endpoints.
  2. Name each percentage base.
  3. Separate description from causal inference.

Your written practice

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11

(10+12)/2.

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90

(100+80)/2.

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3

30/10.

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Different percentage bases can produce different finite-change values.

Name the bases, not an unexplained discrepancy.

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Supply shifts or other simultaneous changes may influence both, so the demand relationship is not isolated.

Give a plausible alternative mechanism.

Apply the idea

Calculate both methods for a fictional change and explain each ratio in words.

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