Suppose when the price of calculators is $10,the quantity demanded is 100,and when the price is $12,the quantity demanded drops to 80.Using the mid-point method,the price elasticity of demand is:
A)1.5.
B)0.81.
C)150 percent.
D)81 percent.

Question

Quizplus · Accepted Answer

The price elasticity of demand using the midpoint method is calculated as [(80-100)/((80+100)/2)] / [(12-10)/((12+10)/2)] = (-20/90) / (2/11) = -1.5.

Suppose When the Price of Calculators Is $10,the Quantity Demanded