use the midpoints formula to compute the elasticity given the following price, q
ID: 1167435 • Letter: U
Question
use the midpoints formula to compute the elasticity given the following price, quantity combinations:
If Price of surgery = $10,000, 10 patients will be willing to undergo it
If Price of surgery = $19,000, 4 patients will be willing to undergo it
round off your answer to 2 decimal places.
- 1.00
- 1.38
- 13.8
- 0.138
none of the above
use the midpoints formula to compute the elasticity given the following price, quantity combinations:
If Price of surgery = $10,000, 10 patients will be willing to undergo it
If Price of surgery = $19,000, 4 patients will be willing to undergo it
Explanation / Answer
Elasticity by Midpoint method = [(19000 – 10000) / ((19000 + 10000) / 2)] / [(4 –10) / ((10 + 4) / 2)]
= 0.621 / -0.858 = -0.728
none of above.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.