Amoroso–Robinson relation - Alchetron, the free social encyclopedia

The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson, describes the relation between price, marginal revenue, and elasticity of demand.

∂ R ∂ x = p ( 1 + 1 ϵ x , p ) ,

where

∂ R ∂ x is the marginal revenue,

x is the particular good,

p is the good's price,

ϵ x , p < 0 is the price elasticity of demand.

References

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