Figure 5-17
-Refer to Figure 5-17.Using the midpoint method,what is the price elasticity of supply between point B and point C?
A)1.44
B)1.29
C)0.96
D)0.69

Question

Figure 5-17 
-Refer to Figure 5-17.Using the midpoint method,what is the price elasticity of supply between point B and point C?
A)1.44 
B)1.29 
C)0.96 
D)0.69

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:Es = (Q2 - Q1) / (P2 - P1) * (P2 + P1) / (Q2 + Q1)Plugging in the values from the graph, we get:Es = (10 - 5) / (10 - 5) * (10 + 5) / (10 + 5) = 1.44

Figure 5-17 -Refer to Figure 5-17.Using the Midpoint Method,what Is the Price