On a certain supply curve,one point is (quantity supplied = 200,price = $4.00)and another point is (quantity supplied = 250,price = $4.50).Using the midpoint method,the price elasticity of supply is about
A)0.22.
B)0.53.
C)1.89.
D)2.22.

Question

Quizplus · Accepted Answer

The midpoint method for calculating price elasticity of supply is:(Q2 - Q1) / ((Q2 + Q1) / 2) / (P2 - P1) / ((P2 + P1) / 2)Plugging in the given values, we get:(250 - 200) / ((250 + 200) / 2) / (4.50 - 4.00) / ((4.50 + 4.00) / 2) = 1.89

On a Certain Supply Curve,one Point Is (Quantity Supplied =