To ensure that we get the same result for price elasticity no matter which direction we move on the demand curve, we must take the average of the
A)initial price and the initial quantity demanded and the average of the new price and the new quantity demanded
B)new price and the initial quantity demanded and the average of the new quantity demanded and the initial price
C)initial price and the new price and the average of the initial quantity demanded and the new quantity demanded
D)initial price and the new price only
E)new quantity demanded and the initial quantity demanded only

Question

Quizplus · Accepted Answer

The midpoint method calculates price elasticity by averaging the initial and new prices and quantities, ensuring consistent results regardless of the direction of movement on the demand curve.

To Ensure That We Get the Same Result for Price