In calculating elasticity, we use the midpoint method for calculating the percentage change because it results in the price elasticity of supply a smaller percentage change if the price rises than if it falls the same percentage change regardless of whether the price increases or decreases, because we are focusing on the magnitude. the price elasticity of demand

Elasticity is the measurement change in quantity demanded or supplied with the change of prices for…

Answered: In calculating elasticity, we use the…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section7.2: The Demand Curve And Elasticity Of Demand

Problem 6R

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In calculating elasticity, we use the midpoint method for calculating the percentage change because it results in

		the price elasticity of supply
		a smaller percentage change if the price rises than if it falls
		the same percentage change regardless of whether the price increases or decreases, because we are focusing on the magnitude.
		the price elasticity of demand

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