Table 5-4

-Refer to Table 5-4.As price rises from $10 to $12,the price elasticity of demand using the midpoint method is approximately
A) 0.08.
B) 0.18.
C) 0.42.
D) 0.58.

Question

Table 5-4
 
-Refer to Table 5-4.As price rises from $10 to $12,the price elasticity of demand using the midpoint method is approximately
A) 0.08. 
B) 0.18. 
C) 0.42. 
D) 0.58.

Quizplus · Accepted Answer

The midpoint method formula for price elasticity of demand is [(Q2 - Q1) / ((Q2 + Q1)/2)] / [(P2 - P1) / ((P2 + P1)/2)]. Without specific quantities, we assume the calculation leads to approximately 0.58.

Table 5-4 -Refer to Table 5-4.As Price Rises from $10 to $12,the