Figure 5-13

-Refer to Figure 5-13.Using the midpoint method,what is the price elasticity of supply between $100 and $220?
A) 0.58
B) 0.67
C) 1.00
D) 1.73

Question

Figure 5-13
 
-Refer to Figure 5-13.Using the midpoint method,what is the price elasticity of supply between $100 and $220?
A) 0.58 
B) 0.67 
C) 1.00 
D) 1.73

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:(Q2 - Q1) / ((Q2 + Q1) / 2) / (P2 - P1) / ((P2 + P1) / 2)Plugging in the values from the graph, we get:(10 - 6) / ((10 + 6) / 2) / (220 - 100) / ((220 + 100) / 2) = 0.58

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