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Suppose that a demand curve exhibits two points. Initially, at price P 0 , the quantity demanded is Q 0 . When price changes to P 1 , quantity demanded is Q 1 . Move the components of the midpoint formula for elasticity of demand to their correct positions.

User Taseenb
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1 Answer

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Answer and Explanation:

The formula to compute the price elasticity of demand is as follows:

= Percentage change in quantity demanded รท percentage change in price

At Price P0, the Quantity demanded is Q0

And,

At Price P1, the Quantity Demanded is Q1

Just like this, it could be computed


(Q_1 - Q_0)/((Q_1 + Q_0)/2) divided by
(P_1 - P_0)/((P_1 + P_0)/2)

Suppose that a demand curve exhibits two points. Initially, at price P 0 , the quantity-example-1
User David Lowenfels
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