Figure 5-15

-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between $4 and $6?
A) 0.75
B) 1.00
C) 1.20
D) 1.25

Question

Figure 5-15
 
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between $4 and $6?
A) 0.75 
B) 1.00 
C) 1.20 
D) 1.25

Quizplus · Accepted Answer

The midpoint method for calculating price elasticity of supply is:(Q2 - Q1) / ((Q2 + Q1) / 2) / (P2 - P1) / ((P2 + P1) / 2)Plugging in the values from the graph, we get:(10 - 8) / ((10 + 8) / 2) / (6 - 4) / ((6 + 4) / 2) = 1.25

Figure 5-15 -Refer to Figure 5-15.Using the Midpoint Method,what Is the Price