Question

The midpoint method of calculating elasticaties determines the percent change in variable as the change in the variable divided by

a. the average value of the variable.
b. the initial value of the variable.
c. the final value of the variable.
numents because the price elas
d. the highest value of the variable.
e. the lowest value of the variable.

Answer 1

The midpoint method of calculating elasticities uses the average value of the variable to determine the percent change, providing consistent elasticity results for price increases or decreases.

Step-by-step explanation:

The Midpoint Method for elasticity is used to calculate the average percent change in both quantity and price along a demand or supply curve. According to this method, the percent change in a variable is determined by dividing the change in the variable by the average value of the variable. This approach calculates the percent change from the average of the initial and final values, thereby ensuring the same elasticity result whether prices increase or decrease.