Asked by Allison Wagoner on May 27, 2024

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Suppose demand is given by the equation:
QD = 80/P
Using the midpoint method, what is the price elasticity of demand between $1 and $2?

Midpoint Method

A technique used in economics to measure the elasticity of a variable by averaging the starting and ending points.

Price Elasticity

A measure indicating how much the quantity demanded of a good or service changes in response to a change in its price.

  • Determine the price elasticity of demand by employing the midpoint method.
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GS
Gursher SekhonMay 31, 2024
Final Answer :
The price elasticity of demand is 1.00.