Figure 5-12
The following figure shows the supply curve for a particular good.
-Refer to Figure 5-12.Using the midpoint method,what is the price elasticity of supply between $100 and $220?
A) 0.58
B) 0.67
C) 1.00
D) 1.73

Question

Figure 5-12
The following figure shows the supply curve for a particular good. 
-Refer to Figure 5-12.Using the midpoint method,what is the price elasticity of supply between $100 and $220?
A) 0.58 
B) 0.67 
C) 1.00 
D) 1.73

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:Es = (%ΔQ / %ΔP) * (Q1 + Q2) / (P1 + P2)where:Es = elasticity of supply%ΔQ = percentage change in quantity supplied%ΔP = percentage change in priceQ1 = initial quantity suppliedQ2 = final quantity suppliedP1 = initial priceP2 = final priceUsing the midpoint method, the price elasticity of supply between $100 and $220 is:Es = ((200 - 100) / (220 - 100)) * (100 + 200) / (100 + 220) = 0.58

Figure 5-12 The Following Figure Shows the Supply Curve for a Particular