Figure 5-18
-Refer to Figure 5-18. Using the midpoint method, what is the price elasticity of supply between $5 and $6?
A) 0.60
B) 0.64
C) 1.57
D) 1.67

Question

Figure 5-18 
-Refer to Figure 5-18. Using the midpoint method, what is the price elasticity of supply between $5 and $6?
A) 0.60 
B) 0.64 
C) 1.57 
D) 1.67

Quizplus · Accepted Answer

The midpoint method calculates elasticity using the average of the starting and ending prices and quantities. The formula is [(Q2 - Q1) / ((Q2 + Q1)/2)] / [(P2 - P1) / ((P2 + P1)/2)]. Applying this to the given prices and quantities results in an elasticity of 1.57.

Figure 5-18 -Refer to Figure 5-18. Using the Midpoint Method, What Is