Question:I'm looking to learn how to calculate elasticity. Using the mid
point method how do I...
Question
I'm looking to learn how to calculate elasticity. Using the mid
point method how do I...
I'm looking to learn how to calculate elasticity. Using the mid
point method how do I calculate the elasticity of demand between
two points e.g A and B.
The price elasticity of demand is the change in the quantity
demanded due to the changes in price.
Inorder to calculate price elasticity of demand between any two
price points we usually use the mid point method as it is more
simpler and the value we obtain remains the same, regardless of the
increase or decrease in price.
The formula for the price elasticity of demand between any
points A and B is given as:-
Let the quantity and price of a point A be Q1 and P1 and
quantity and price of a point B be Q2 and P2.
Then change in quantity =( (Q2 - Q1) /(Q2+Q1) ÷2 ) * 100