Figure 5-16
-Refer to Figure 5-16.Using the midpoint method,what is the price elasticity of supply between $4 and $6?
A)0.75
B)1.00
C)1.20
D)1.25

Name: Figure 5-16 -Refer to Figure 5-16.Using the midpoint method,what is the price elasticity of supply between $4 and $6? A)0.75 B)1.00 C)1.20 D)1.25
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Question

Figure 5-16 
-Refer to Figure 5-16.Using the midpoint method,what is the price elasticity of supply between $4 and $6?
A)0.75 
B)1.00 
C)1.20 
D)1.25

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:$$E_s=\frac{(Q_2-Q_1)/[(Q_2+Q_1)/2]}{(P_2-P_1)/[(P_2+P_1)/2]}$$$$E_s=\frac{(10-8)/[(10+8)/2]}{(6-4)/[(6+4)/2]}$$$$E_s=\frac{2/9}{2/10}=1.25$$

Figure 5-16 -Refer to Figure 5-16.Using the Midpoint Method,what Is the Price