Question

Using the midpoint method The following graph shows two known points (X and Y) on a demand curve for apples. PRICE (Dollars per pound) & QUANTITY (Thousands of pounds of apples)4 & 605 & 40According to the midpoint method, the price elasticity of demand for apples between point X and point Y is approximately ? , which suggests that the demand for apples is between points X and Y elastic/inelastic?.

Answer 1

Answer:

The elasticity of demand is elastic

Explanation:

by using the mid point formula

elasticity if demand = 40-60/40+60

                                         5-4/5+4

                               =  -20 * 9

                                    100* 1

                                = -1.80

The elasticity of demand between the point X and the point Y is approximately -1.80

The calculated elacticity is greater than 1. Therefore, the elasticity of demand is ELASTIC