Figure 5-5
-Refer to Figure 5-5.Using the midpoint method,between prices of $20 and $30,price elasticity of demand is about
A)0.33.
B)0.4.
C)1.33.
D)3.

Question

Figure 5-5 
-Refer to Figure 5-5.Using the midpoint method,between prices of $20 and $30,price elasticity of demand is about
A)0.33. 
B)0.4. 
C)1.33. 
D)3.

Quizplus · Accepted Answer

The midpoint method is used to calculate the elasticity of demand between two points on a demand curve. The formula for the midpoint method is:```Ed = (Q2 - Q1) / ((P2 + P1) / 2) * (P1 / Q1)```where:* Ed is the elasticity of demand* Q1 is the quantity demanded at the first point* Q2 is the quantity demanded at the second point* P1 is the price at the first point* P2 is the price at the second pointUsing the midpoint method, the elasticity of demand between prices of $20 and $30 is:```Ed = (100 - 80) / ((30 + 20) / 2) * (20 / 80) = 0.33```Therefore, the correct answer is A) 0.33.

Figure 5-5 -Refer to Figure 5-5.Using the Midpoint Method,between Prices of $20