Figure 5-14

-Refer to Figure 5-14.Using the midpoint method,what is the price elasticity of supply between points A and B?
A) 2.33
B) 1.0
C) 0.43
D) 0.1

Question

Figure 5-14
 
-Refer to Figure 5-14.Using the midpoint method,what is the price elasticity of supply between points A and B?
A) 2.33 
B) 1.0 
C) 0.43 
D) 0.1

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:Es = (%ΔQ / %ΔP) * (Q1 + Q2) / (P1 + P2)Plugging in the values from points A and B, we get:Es = ((100 - 50) / (100 - 50)) * (50 + 100) / (100 + 50) = 2.33

Figure 5-14 -Refer to Figure 5-14.Using the Midpoint Method,what Is the Price