Asked by Osvaldo Munoz on May 30, 2024

verifed

Verified

The midpoint method is used to calculate elasticity between two points because it gives the same answer regardless of the direction of the change.

Midpoint Method

A technique used in economics to calculate the percentage change between two points, providing a more accurate measure than simple percentage calculations.

Elasticity

A measure of a variable's sensitivity to a change in another variable, used in economics to describe how the quantity demanded of a good responds to changes in price or income.

  • Learn about the midpoint method for calculating elasticity.
verifed

Verified Answer

AF
Abbigail FriesJun 01, 2024
Final Answer :
True
Explanation :
The midpoint method calculates elasticity as the percentage change in quantity divided by the percentage change in price, using the average of the initial and final quantities and prices. This approach yields the same elasticity value whether we move from point A to point B or from point B to point A, ensuring consistency in elasticity calculations regardless of the direction of change.