Table 5-3
The following table shows the demand schedule for a particular good.

-Refer to Table 5-3.Using the midpoint method,when price rises from $6 to $9,the price elasticity of demand is
A) 0.43
B) 0.67
C) 1.00
D) 1.5

Question

Table 5-3
The following table shows the demand schedule for a particular good.
 
-Refer to Table 5-3.Using the midpoint method,when price rises from $6 to $9,the price elasticity of demand is
A) 0.43 
B) 0.67 
C) 1.00 
D) 1.5

Quizplus · Accepted Answer

The midpoint method calculates elasticity using the average of the starting and ending prices and quantities. If the elasticity is 1.00, it indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price.

Table 5-3 The Following Table Shows the Demand Schedule for a Particular