Refer to the figure above.Over the $5-$6 range,the elasticity of demand using the midpoint formula is:
A) 0.22.
B) 0.88.
C) 1.00.
D) 1.16. The change in quantity is (60 - 50)/(60 + 50)= 0.091 and the change in price is (5 - 6)/(5 + 6)= 0.091.Thus,elasticity is 0.091/0.091 = 1.0.

Question

Refer to the figure above.Over the $5-$6 range,the elasticity of demand using the midpoint formula is:
A) 0.22. 
B) 0.88. 
C) 1.00. 
D) 1.16. The change in quantity is (60 - 50)/(60 + 50)= 0.091 and the change in price is (5 - 6)/(5 + 6)= 0.091.Thus,elasticity is 0.091/0.091 = 1.0.

Quizplus · Accepted Answer

The elasticity of demand using the midpoint formula over the $5-$6 range is 1.0, as calculated by dividing the change in quantity by the change in price.

Refer to the Figure Above