Figure 5-14
-Refer to Figure 5-14. 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 5-14 
-Refer to Figure 5-14. 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:(Q2 - Q1) / ((Q2 + Q1) / 2) / (P2 - P1) / ((P2 + P1) / 2)Plugging in the values from the graph, we get:(100 - 60) / ((100 + 60) / 2) / (220 - 100) / ((220 + 100) / 2) = 0.58

Figure 5-14 -Refer to Figure 5-14. Using the Midpoint Method, What Is