The main reason for using the midpoint method to calculate an elasticity is that it
A)gives the same answer regardless of whether the price increases or decreases.
B)recognizes that prices are usually increasing, not decreasing.
C)rounds prices to the nearest dollar and quantities to the nearest whole unit.
D)uses fewer numbers than alternative methods.

Question

Quizplus · Accepted Answer

The midpoint method is preferred over other methods for calculating elasticity because it gives the same answer regardless of whether the price increases or decreases. This is important because elasticities represent proportional responses to changes in price or quantity, so the direction of the change should not affect the calculation.

The Main Reason for Using the Midpoint Method to Calculate