Figure 5-15
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points A and B?
A)2.33
B)1.0
C)0.43
D)0.1

Question

Figure 5-15 
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points A and B?
A)2.33 
B)1.0 
C)0.43 
D)0.1

Quizplus · Accepted Answer

The midpoint method is used to calculate the elasticity of supply between two points on a supply curve. The formula for the midpoint method is:Es = (Q2 - Q1) / (P2 - P1) * (P2 + P1) / (Q2 + Q1)where:Es is the elasticity of supplyQ1 is the quantity supplied at point 1P1 is the price at point 1Q2 is the quantity supplied at point 2P2 is the price at point 2Using the midpoint method, the price elasticity of supply between points A and B is:Es = (100 - 50) / (10 - 5) * (10 + 5) / (100 + 50)= 50 / 5 * 15 / 150= 2.33Therefore, the correct answer is A.

Figure 5-15 -Refer to Figure 5-15.Using the Midpoint Method,what Is the Price