Final answer:
To calculate the price elasticity of demand using the Midpoint Method, we need both the quantity and price before and after the change. The elasticity is calculated as the percentage change in quantity demanded divided by the percentage change in price. Without actual prices, we cannot compute a numerical value for elasticity.
Step-by-step explanation:
To calculate the price elasticity of demand using the Midpoint Method, we need to know two price points and the corresponding quantity demanded at each price. The midpoint formula for elasticity is given by:
Elasticity = (Q2 - Q1) / [(Q2 + Q1) / 2] ÷ (P2 - P1) / [(P2 + P1) / 2]
Where:
Q1 = Initial quantity demanded
Q2 = Final quantity demanded
P1 = Initial price
P2 = Final price
Applying this formula to each group, let's take group (a), which has quantities of 0.2 and 0.3:
Elasticity (a) = (0.3 - 0.2) / [(0.3 + 0.2) / 2] ÷ (P2 - P1) / [(P2 + P1) / 2]
Note: Without the actual prices P1 and P2, we cannot calculate a numerical value for elasticity.
Now, take group (c) with quantities 1.5 and 1.7:
Elasticity (c) = (1.7 - 1.5) / [(1.7 + 1.5) / 2] ÷ (P2 - P1) / [(P2 + P1) / 2]
Again, without knowing the actual prices, we cannot provide a numerical answer. However, the method you would use is correct, and you would pick the correct option based on the results you compute when the prices P1 and P2 are given. The same approach applies to groups (b) and (d).