Table 5-2

-Refer to Table 5-2. Using the midpoint method, if the price falls from $200 to $150, the price elasticity of demand is
A) zero.
B) unit elastic.
C) inelastic.
D) elastid.

Question

Table 5-2
 
-Refer to Table 5-2. Using the midpoint method, if the price falls from $200 to $150, the price elasticity of demand is
A) zero. 
B) unit elastic. 
C) inelastic. 
D) elastid.

Quizplus · Accepted Answer

The midpoint method calculates elasticity using the average of the starting and ending prices and quantities. If the price falls from $200 to $150, the percentage change in price and quantity can be calculated, and the elasticity will be greater than 1, indicating elastic demand.

Table 5-2 -Refer to Table 5-2. Using the Midpoint Method, If the Midpoint