(Figure: The Demand Curve) Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $8 is approximately:

A) 0.23.
B) 0.45.
C) 2.33.
D) 4.50.

Question

(Figure: The Demand Curve) Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $8 is approximately:A) 0.23.B) 0.45.C) 2.33.D) 4.50.

Awais Qarni · Accepted Answer

Final Answer : C, Explanation :   The midpoint method for calculating elasticity is given by the formula:   E d = % Δ Q % Δ P E_d = \frac{\%\Delta Q}{\%\Delta P} E d ​ = %Δ P %Δ Q ​  , where   % Δ Q \%\Delta Q %Δ Q   is the percentage change in quantity demanded, and   % Δ P \%\Delta P %Δ P   is the percentage change in price. Without the specific quantities from the figure, we can't calculate the exact numbers, but the midpoint method is designed to give a more accurate measure of elasticity over a range of prices. An elasticity of 2.33 suggests a relatively elastic demand, where a price change leads to a more than proportionate change in quantity demanded, which is plausible for many goods in the range of prices given.

(Figure: The Demand Curve) Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $8 is approximately:

A) 0.23.
B) 0.45.
C) 2.33.
D) 4.50.

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