Why is the midpoint method used to compute elasticity
A)It automatically computes a positive number instead of a negative number.
B)It uses the same equation that is used to compute slope.
C)It gives the same answer regardless of the direction of change.
D)It automatically rounds quantities to the nearest whole unit.

Question

Quizplus · Accepted Answer

The midpoint method is used to compute elasticity because it gives the same answer regardless of the direction of change. This is important because the price elasticity of demand can be different depending on whether the price increases or decreases. By using the midpoint method, we can calculate a single value for the price elasticity of demand that is applicable in all situations.

Why Is the Midpoint Method Used to Compute Elasticity