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Using the midpoint formula for calculating the elasticity of demand if the price of the good falls from $42 to $38, what would be the elasticity of demand if the quantity demanded changes from:

A. 19 to 21

B. 27 to 33

C. 195 to 205

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Divya Singh
Divya SinghLv10
25 Oct 2020

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Related questions

Using the midpoint method, calculate the price elasticity of demand for Good X using the following information: When the price of good X is $50, the quantity demanded of good X is 400 units. When the price of good X rises to $60, the quantity demanded of good X falls to 300 units.

A. The price elasticity of demand for good X = 0.64.

B. The price elasticity of demand for good X = 1.57.

Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases from 110 to 118. Then the price elasticity of demand is (based on the midpoint formula):

a) 4.0.

b) 2.1.

c) 3.9.

d) 1.4.

a. Determine the price elasticity of demand at each quantity demanded using the arc or midpoint formula: Percentage change in quantity demanded =(Q2-Q1)/Q1 divided by percentage change in price= (P2-P1)/P1.

b. Redo exercise using price changes of $10 rather than $5.

 

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