Table 5-3
Consider the following demand schedule.
-Refer to Table 5-3. Using the midpoint method, in which range is demand most elastic?
A)$0 to $3
B)$3 to $6
C)$9 to 12
D)$12 to $15

Question

Table 5-3
Consider the following demand schedule. 
-Refer to Table 5-3. Using the midpoint method, in which range is demand most elastic?
A)$0 to $3 
B)$3 to $6 
C)$9 to 12 
D)$12 to $15

Quizplus · Accepted Answer

The midpoint method calculates elasticity by averaging the starting and ending prices and quantities. Demand is most elastic in the range where the percentage change in quantity demanded is greatest relative to the percentage change in price.

Table 5-3 Consider the Following Demand Schedule