Amoroso–Robinson relation

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

$\frac{\partial R}{\partial x}=p\left( 1+\frac{1}{\epsilon _{x,p}}\right)$,

where

• $\scriptstyle \frac{\partial R}{\partial x}$ is the marginal revenue,
• $x$ is the particular good,
• $p$ is the good's price,
• $\epsilon_{x,p}<0$ is the price elasticity of demand.

See also

• Lerner index
• Ramsey problem