The midpoint formula for elasticity of demand solves the problem of
A) whether elasticity of demand is really positive or negative.
B) whether to use quantity or price in the numerator.
C) which price or quantity to use as the initial value of the variable.
D) whether to use quantity demanded or supplied.

Question

Quizplus · Accepted Answer

The midpoint formula for elasticity of demand solves the problem of which price or quantity to use as the initial value of the variable. It overcomes the limitation of using only one set of prices and quantities, which can lead to different elasticity coefficients depending on the starting point chosen.

The Midpoint Formula for Elasticity of Demand Solves the Problem