Asked by Ciara Lawrence on May 16, 2024
Verified
If you wanted to make sure that your calculation of elasticity between two points was the same,regardless of your initial point,you would use:
A) the absolute value of elasticity.
B) supply elasticity.
C) the midpoint formula calculation of elasticity.
D) the point formula calculation of elasticity.
Midpoint Formula
A method used in geometry to find the midpoint or the center point between two points on a line segment.
Absolute Value
The non-negative value of a number regardless of its sign.
Elasticity
a measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.
- Apply the midpoint method to calculate changes in elasticity.
Verified Answer
CC
Christy ChrisMay 21, 2024
Final Answer :
C
Explanation :
The midpoint formula calculation of elasticity ensures that the elasticity measure is the same regardless of whether we move from point A to point B or from point B to point A. This is because it takes the average of the two prices and quantities at the beginning and end points, which eliminates any bias that may result from using the original prices and quantities as the denominator in the elasticity calculation.
Learning Objectives
- Apply the midpoint method to calculate changes in elasticity.