Refer to the graph above.Over the $5-$6 range,the elasticity of supply using the midpoints formula is:
A) 0.22.
B) 0.88.
C) 1.00.
D) 1.22. The change in quantity is (50 - 40)/(50 + 40)= 0.111 and the change in price is (6 - 5)/(6 + 5)= 0.091.Thus elasticity is 0.111/0.091 = 1.22.

Question

Refer to the graph above.Over the $5-$6 range,the elasticity of supply using the midpoints formula is:
A) 0.22. 
B) 0.88. 
C) 1.00. 
D) 1.22. The change in quantity is (50 - 40)/(50 + 40)= 0.111 and the change in price is (6 - 5)/(6 + 5)= 0.091.Thus elasticity is 0.111/0.091 = 1.22.

Quizplus · Accepted Answer

Using the midpoints formula, the elasticity of supply over the $5-$6 range is 1.22.

Refer to the Graph Above