The main reason for using the midpoint method is that it:
A)gives the same answer regardless of the direction of change
B)uses fewer numbers
C)rounds prices to the nearest dollar
D)rounds quantities to the nearest whole unit

Question

Quizplus · Accepted Answer

The midpoint method is used to calculate price elasticity of demand, which measures the responsiveness of quantity demanded to changes in price. The midpoint formula takes into account both the initial and final prices and quantities, and thus gives the same answer regardless of whether the change is an increase or decrease in price. This makes it a more accurate and reliable method for calculating elasticity. Options B, C, and D are not relevant to the purpose or benefits of the midpoint method.

The Main Reason for Using the Midpoint Method Is That