-In the figure above,using the midpoint method,what is the price elasticity of demand between points A and B?
A) 0.05
B) 0.13
C) 0.43
D) 1.00
E) 2.33

Question

-In the figure above,using the midpoint method,what is the price elasticity of demand between points A and B?
A) 0.05 
B) 0.13 
C) 0.43 
D) 1.00 
E) 2.33

Quizplus · Accepted Answer

The midpoint method for calculating price elasticity of demand is:%ΔQd/%ΔP = (Q2 - Q1) / (P2 - P1) * (P2 + P1) / (Q2 + Q1)Plugging in the values from points A and B, we get:%ΔQd/%ΔP = (100 - 120) / (10 - 8) * (10 + 8) / (100 + 120) = -0.43

-In the Figure Above,using the Midpoint Method,what Is the Price