To overcome ambiguity related to the direction of the price change, economists use what is known as the _____ method to estimate the percentages of changes when calculating elasticities.
A) integral
B) percentage
C) estimation
D) midpoint

Question

Quizplus · Accepted Answer

The midpoint method is used by economists to calculate the percentage change in price and quantity when estimating elasticities, as it provides a consistent measure that does not depend on the direction of the change.

To Overcome Ambiguity Related to the Direction of the Price