Table 5-6
-Refer to Table 5-6. Using the midpoint method, demand is unit elastic when quantity demanded changes from
A)500 to 400.
B)400 to 300.
C)300 to 200.
D)200 to 100.

Question

Table 5-6 
-Refer to Table 5-6. Using the midpoint method, demand is unit elastic when quantity demanded changes from
A)500 to 400. 
B)400 to 300. 
C)300 to 200. 
D)200 to 100.

Quizplus · Accepted Answer

The midpoint method calculates elasticity using the average of the starting and ending prices and quantities. Demand is unit elastic when the percentage change in quantity demanded equals the percentage change in price. In this case, the change from 400 to 300 results in a unit elastic demand.

Table 5-6 -Refer to Table 5-6. Using the Midpoint Method, Demand Is