Figure 5-15
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points B and C?
A)1.67
B)1.19
C)0.84
D)0.61

Question

Figure 5-15 
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points B and C?
A)1.67 
B)1.19 
C)0.84 
D)0.61

Quizplus · Accepted Answer

Using the midpoint method formula, we get: 
Price elasticity of supply = [(Change in quantity supplied / Average quantity supplied)  ÷ (Change in price / Average price)]
[(200-100) / ((100+200)/2)] ÷ [(25-20)/((25+20)/2)] = 1.19
Therefore, the correct answer is B) 1.19.

Figure 5-15 -Refer to Figure 5-15.Using the Midpoint Method,what Is the Price