Figure 5-5
-Refer to Figure 5-5.Using the midpoint method,between prices of $50 and $60,price elasticity of demand is about
A)0.22.
B)0.82.
C)1.22.
D)2.

Question

Figure 5-5 
-Refer to Figure 5-5.Using the midpoint method,between prices of $50 and $60,price elasticity of demand is about
A)0.22. 
B)0.82. 
C)1.22. 
D)2.

Quizplus · Accepted Answer

The midpoint method calculates elasticity using the average of the starting and ending prices and quantities. Between $50 and $60, the percentage change in quantity demanded divided by the percentage change in price results in an elasticity of approximately 1.22.

Figure 5-5 -Refer to Figure 5-5.Using the Midpoint Method,between Prices of $50