Question

supply CengageNOW 2 Assignments Overview 515P20V > Assignments > 5.1 Price Elasticity of Demand and Price Elasticity of Supply conuerecon 3150 test 2 Plashcards Quile 5.1 Price Elasticity of Demand and Price Elasticity of Supply The table shows the price and quantity demanded for exercise balls. Using the Midpoint Method, what is the price elasticity of demand between points B and C? Note: Remember to take the absolute value of the result and round to the nearest hundredth. Rounding should be done at the end of your calculation. Point Price Quantity $30 10,000 в $329.900 $34 9,800 DI $36 9,700 E $38 9,600 с • Previous

Answer 1

Point Price O $30 B $32P2 C $34 P & Quantity 10,000 9900 82 98008 9700 - 30t 9600 & & W & D $36 A { $38 97 98 99 100 Calculating hid Point Price Elasticity of Demand using method of Point (Bt C) or (Cto B. Price Elasticity of Demand = Percentage Change in I demandor quantity Percentage change in Price mid Point formula Percentage Change in quantity = 82-9, x loo (62tout2 = 9900 - 9800 x 990079800)-2 - X10o = 1.02 -102 Percentage Change in Price = P P xoo (P₂ +P.) +2 = 32-34 x 100 = -6.06 (32+34) 2

Price Elasticity of Demand - 1.02 -6.06 - -0.17 The Elasticity of Demand between Band C is 0.17 Which is an amscent, Smaller than I. That means that the Remand in this internal is inclastic