Final answer:
The price elasticity of demand for jackfruit between points A and B, calculated using the Midpoint Method, is 0.45 making it inelastic, meaning the demand does not change significantly with price changes.
Step-by-step explanation:
Using the midpoint method, the price elasticity of demand for jackfruit between point A and point B is approximately inelastic. This indicates that demand for jackfruit is inelastic between points A and B. The given elasticity is 0.45, which is an amount smaller than one, showing inelastic demand in this interval. Price elasticities of demand are typically negative but are discussed as positive numbers by convention.
The advantage of the Midpoint Method for calculating price elasticity of demand is that it provides the same elasticity value for both price increases and decreases due to using the average quantity and average price as a base. Between points A and B, the elasticity is inelastic, whereas at different points on the curve, such as between points G and H, the elasticity became elastic (1.47), demonstrating that price elasticity of demand changes at different points along a straight-line demand curve.