Table 5-4
The following table shows the demand schedule for a particular good.
-Refer to Table 5-4. Using the midpoint method, what is the price elasticity of demand when price rises from $12 to $16?
A)0.43
B)0.67
C)2.33

Question

Table 5-4
The following table shows the demand schedule for a particular good. 
-Refer to Table 5-4. Using the midpoint method, what is the price elasticity of demand when price rises from $12 to $16?
A)0.43 
B)0.67 
C)2.33

Quizplus · Accepted Answer

The midpoint method calculates elasticity as the percentage change in quantity demanded divided by the percentage change in price. If the percentage change in quantity demanded is greater than the percentage change in price, the elasticity will be greater than 1, indicating elastic demand.

Table 5-4 The Following Table Shows the Demand Schedule for a Particular