Using the midpoint formula for calculating the elasticity of demand, if the price of a good fell from $32 to $28, what would be the elasticity of demand if the quantity demanded changed from: a. $18 to $26? c. $185 to $315?

Using the midpoint formula for calculating the elasticity of demand, if the price of a good fell from $32 to $28, what would be the elasticity of demand if the quantity demanded changed from: a. $18 to $26? c. $185 to $315?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 18P: Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose...

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5. Using the midpoint formula for calculating the elasticity of demand, if the price of a
good fell from $32 to $28, what would be the elasticity of demand if the quantity
demanded changed from:
a. $18 to $26?
c. $185 to $315?
If both supply curves and demand curves are more elastic in the long run than in the

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Step 1: Define Elasticity of demand and Midpoint approach

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Step 2: a) Find the elasticity of demand when quantity goes from 18 to 26

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Step 3: b) Find the elasticity of demand when quantity goes from 185 to 315

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