The mid-point method of calculating elasticity is often used because:
A)it allows us to have a consistent way to estimate the elasticity of demand between two points,regardless of the direction of the movement.
B)it is easier to calculate.
C)it is universally understood by all economists.
D)the negative sign can then be ignored.

Question

Quizplus · Accepted Answer

The mid-point method of calculating elasticity is preferred over other methods because it allows us to have a consistent way to estimate the elasticity of demand between two points, regardless of the direction of the movement. It is considered more accurate than other methods because it takes into account the changes in both the price and quantity, and considers the average value of both. It is also known as the arc elasticity method.

The Mid-Point Method of Calculating Elasticity Is Often Used Because