Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 5 - Part II - Elasticity and its Application - Quick Check Multiple Choice: 2


b. ½

Work Step by Step

The midpoint method is calculated as $[(Q2-Q1)/[Q2+Q1)/2]]/[(P2-P1)/[(P2+P1)/2]]$ Plugging in the numbers, we get: $[(110-90)/[(110+90)/2]]/[(12-8)/[(12+8)/2]] = 20/100 / 4/10 = 1/2$
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