The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A)when demand is elastic.
B)in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.
C)to ensure that the elasticity has a negative value.
D)to ensure that we have only one value of the price elasticity of demand between two points on a demand curve.

Question

Quizplus · Accepted Answer

The midpoint formula is used to calculate the price elasticity of demand between two points on a demand curve to ensure consistency and avoid different elasticity values depending on the direction of the change.

The Midpoint Formula Is Used to Measure the Elasticity of Demand