Question

Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price changes to P 1 P1 , quantity demanded is Q 1 Q1 . Move the components of the midpoint formula for elasticity of demand to their correct positions. price elasticity of demand = ∣ ∣ ∣ ∣ ∣ ( − ( + 2 ) ) ( − ( + 2 ) ) ∣ ∣ ∣ ∣ ∣ price elasticity of demand=|( − ( + 2))( − ( + 2))|

Answer 1

Answer:

Price Elasticity of Demand 1

Explanation:

We are given the following data:

$\left[\begin{array}{ccc}Price&Quantity\\0&0\\1&1\end{array}\right]$

We solve for price elasticity which is the reaction to demand based on the price:

$\frac{q_1-q_2}{\frac{q_1+q_2}{2}} \div\frac{p_1-p_2}{\frac{p_1+p_2}{2}}$

We post our values into the formula:

$\frac{0-1}{\frac{0+1}{2}} \div \frac{0-1}{\frac{0+1}{2}}$

And solve for the price elasticity of demand

$\frac{-1}{\frac{+1}{2}} \div \frac{-1}{\frac{+1}{2}}$

$-0.5 \div -0.5$

Price Elasticity of Demand 1

Answer 2

Answer:

B. $550

Explanation: