**Using the Midpoint Method**The following graph shows two known points (X and Y) on a demand curve for oranges.**Graph Explanation:**- The graph represents a linear demand curve for oranges.- The x-axis indicates the quantity of oranges in thousands of pounds, ranging from 0 to 100.- The y-axis indicates the price in dollars per pound, ranging from 0 to 10.- The demand curve is a downward sloping line labeled "Demand."- Point X is at a quantity of 40,000 pounds and a price of $7 per pound.- Point Y is at a quantity of 20,000 pounds and a price of $8 per pound.**Midpoint Method Calculation:**According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately [selectable options: 0.05, 0.2, 0.25, 5], which suggests that the demand for oranges is [characterization based on elasticity value chosen] between points X and Y.

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The following graph shows two known points (X and Y) on a demand curve for oranges. 10 7 Demand 1 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of pounds of oranges) 0.05 0.2 0.25 5 According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately , which suggests that the demand for oranges is v between points X and Y. PRICE (Dollars per pound)

The following graph shows two known points (X and Y) on a demand curve for oranges. 10 7 Demand 1 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of pounds of oranges) 0.05 0.2 0.25 5 According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately , which suggests that the demand for oranges is v between points X and Y. PRICE (Dollars per pound)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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