Finzuro-MAidnnint Formul Based on the midpoint formula, what is the elasticity of demand between $40 and $60 ? a. 1.25 4 b. 2.5 c. d. 0.75 5 Figure: Midpoint Formula 60 2 20 12 16 20 Q Based on the midpoint formula, what is the elasticity of demand between $40 and $607 1.20 0.25 04/5 .0.75 Figure: Midpoint Formula P $80 60 40 20 D 0 4 12 16 20 Based on the midpoint form a. 1.25 b.2.5 c. 4/5 Od.0.75

Finzuro-MAidnnint Formul Based on the midpoint formula, what is the elasticity of demand between $40 and $60 ? a. 1.25 4 b. 2.5 c. d. 0.75 5 Figure: Midpoint Formula 60 2 20 12 16 20 Q Based on the midpoint formula, what is the elasticity of demand between $40 and $607 1.20 0.25 04/5 .0.75 Figure: Midpoint Formula P $80 60 40 20 D 0 4 12 16 20 Based on the midpoint form a. 1.25 b.2.5 c. 4/5 Od.0.75

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 34P: The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to...

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Explain why using the midpoint formula for calculating the elasticity of demand gives the same result whether price increases or decreases, but using the initial price and quantity instead of the average does not.
A city has build a bridge over a river and it decides to charge a toll to everyone who crosses. For one year, the city charges a variety of different tolls and records information on how many drivers cross the bridge. The city thus gathers information about elasticity of demand. If the city wishes to raise as much revenue as possible from the tolls, where will the city decide to charge a toll: in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion? Explain.
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