When changing the inputs a tiny bit, how does the Output change?
How much does the output change, when input changes by 1%. Taking a very small delta which will change the price. Then figuring out by what percentage the output changes.
converges to the derivative → Derivatives the “percentage” is the slope of the derivative
In many cases the curve will be convex → promoting variety instead of extremes In some other cases the curve will be concave → promoting extremes