The midpoint method is used to calculate elasticity because it gives the same answer regardless of the direction of the change between two points.

Question

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The midpoint method is designed to calculate the elasticity between two points on a demand curve or supply curve, regardless of the direction of the change between those two points. The formula for the midpoint method is (ΔQ/((Q1+Q2)/2))/(ΔP/((P1+P2)/2)), where ΔQ represents the change in quantity, Q1 and Q2 are the original and new quantities respectively, ΔP represents the change in price, and P1 and P2 are the original and new prices respectively. Using this formula, the same elasticity value will be obtained regardless of whether the change is from point 1 to point 2 or from point 2 to point 1.

The Midpoint Method Is Used to Calculate Elasticity Because It