This is the number of units sold at a price of $900 divided by the number of units sold at a price of $1,000. Using the midpoint method, the correct formula for the price elasticity of demand is: (Q2 ? Q 1) / [(Q2 + Q 1) / 2] Ed = (P 2 ? P 1) / [(P2 + P1) / 2] Where: Q 1 and 2 = First and second quantity points P1 and 2 = First and second price points
Using the midpoint method of calculating the price elasticity of demand, the formula is: (Q2 ? Q 1) / [(Q2 + Q 1) / 2] Ed = (P 2 ? P 1) / [(P2 + P1) / 2] Where: Q 1 and 2 = First and second quantity points P1 and 2 = First and second price points The price elasticity of demand will be the same whether it is calculated using $1,000 and $900 as P1 and P 2 and $100,000 and $115,000 as Q 1 and Q 2, or using $900 and $810 as P 1 and P2 and $115,000 and $132,250 as Q 1 and Q 2. (115,000 ? 100,000) / [(115,000 + 100,000) / 2] Ed = (900 ? 1,000) / [(900 + 1,000) / 2] 15,000 /107,000 Ed = = 0.139535 / 0.105263 = 1.3255 or 1.33 100 / 950
This is the percentage change in price divided by the percentage change in quantity. The price elasticity of demand, calculated using the percentage method, is the percentage change in quantity divided by the percentage change in price. Using the midpoint method, the correct formula for the price elasticity of demand is: (Q2 ? Q 1) / [(Q2 + Q 1) / 2] Ed = (P 2 ? P 1) / [(P2 + P1) / 2] Where: Q 1 and 2 = First and second quantity points P1 and 2 = First and second price points
This is the percentage method of calculating the income elasticity of demand. It is not the price elasticity of demand. Using the midpoint method, the correct formula for the price elasticity of demand is: (Q2 ? Q 1) / [(Q2 + Q 1) / 2] Ed = (P 2 ? P 1) / [(P2 + P1) / 2] Where: Q 1 and 2 = First and second quantity points P1 and 2 = First and second price points
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The price elasticity of demand for LSTs, using the midpoint method, is