In mathematics and economics, the arc elasticity is the elasticity of one variable with respect to another between two given points. It is the ratio of the percentage change of one of the variables between the two points to the percentage change of the other variable. It contrasts with the point elasticity, which is the limit of the arc elasticity as the distance between the two points approaches zero and which hence is defined at a single point rather than for a pair of points.
Like the point elasticity, the arc elasticity can vary in value depending on the starting point. For example, the arc elasticity of supply of a product with respect to the product's price could be large when the starting and ending prices are both low, but could be small when they are both high.20%/10%=2