Figure 5-13
-Refer to Figure 5-13.Using the midpoint method,what is the price elasticity of supply between points A and B?
A) 2.33
B) 1.0
C) 0.43
D) 0.1

Question

Figure 5-13 
-Refer to Figure 5-13.Using the midpoint method,what is the price elasticity of supply between points A and B?
A) 2.33 
B) 1.0 
C) 0.43 
D) 0.1

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:%ΔQ/%ΔP = (Q2 - Q1)/(P2 - P1) * (P1 + P2)/(Q1 + Q2)Plugging in the values from points A and B, we get:%ΔQ/%ΔP = (100 - 50)/(10 - 5) * (5 + 10)/(50 + 100) = 2.33

Figure 5-13 -Refer to Figure 5-13.Using the Midpoint Method,what Is the Price