Table 5-3
Consider the following demand schedule.
-Refer to Table 5-3. Using the midpoint method, what is the price elasticity of demand between $0 and $3?
A) 0.11
B) 0.22
C) 0.40
D) 2.00

Question

Table 5-3
Consider the following demand schedule. 
-Refer to Table 5-3. Using the midpoint method, what is the price elasticity of demand between $0 and $3?
A) 0.11 
B) 0.22 
C) 0.40 
D) 2.00

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is:(Q2 - Q1) / ((Q2 + Q1) / 2) / (P2 - P1) / ((P2 + P1) / 2)Plugging in the values from the table, we get:(10 - 20) / ((10 + 20) / 2) / (3 - 0) / ((3 + 0) / 2) = -0.11

Table 5-3 Consider the Following Demand Schedule