Figure 5-18
-Refer to Figure 5-18.Using the midpoint method,what is the price elasticity of supply between $5 and $6?
A)0.60
B)0.64
C)1.57
D)1.67

Question

Figure 5-18 
-Refer to Figure 5-18.Using the midpoint method,what is the price elasticity of supply between $5 and $6?
A)0.60 
B)0.64 
C)1.57 
D)1.67

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:(Q2 - Q1) / ((Q2 + Q1) / 2) / (P2 - P1) / ((P2 + P1) / 2)Plugging in the values from the graph, we get:(10 - 5) / ((10 + 5) / 2) / (6 - 5) / ((6 + 5) / 2) = 1.57

Figure 5-18 -Refer to Figure 5-18.Using the Midpoint Method,what Is the Price