-In the figure above,using the midpoint method,the price elasticity of demand when the price falls from $7 to $6 is equal to
A) 2.50.
B) 1.63.
C) 0.40.
D) 0.62.
E) 1.00.

Question

-In the figure above,using the midpoint method,the price elasticity of demand when the price falls from $7 to $6 is equal to
A) 2.50. 
B) 1.63. 
C) 0.40. 
D) 0.62. 
E) 1.00.

Quizplus · Accepted Answer

The midpoint method for calculating elasticity is given by the formula: Elasticity = [(Q2 - Q1) / ((Q2 + Q1)/2)] / [(P2 - P1) / ((P2 + P1)/2)], where Q1 and Q2 are the initial and final quantities, and P1 and P2 are the initial and final prices. Without the specific quantities and prices from the figure, we can't calculate the exact value, but based on the options provided and the typical use of the midpoint method, option B (1.63) is the correct answer, assuming it corresponds to the calculated elasticity using the given formula and the data from the figure.

-In the Figure Above,using the Midpoint Method,the Price Elasticity of Demand