Figure 5-15
-Refer to Figure 5-15. Using the midpoint method, what is the price elasticity of supply between points C and D?
A) 0.21
B) 0.29
C) 0.73
D) 1.36

Question

Figure 5-15 
-Refer to Figure 5-15. Using the midpoint method, what is the price elasticity of supply between points C and D?
A) 0.21 
B) 0.29 
C) 0.73 
D) 1.36

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:Es = (Q2 - Q1) / (P2 - P1) * (P2 + P1) / (Q2 + Q1)Plugging in the values from points C and D, we get:Es = (100 - 50) / (10 - 5) * (10 + 5) / (100 + 50) = 0.73

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