3. Using the midpoint method
The following graph shows two known points (X and Y) on a demandcurve for apples.
3 Using The Midpoint Method The Following Graph Shows Two Known Points X And Y On A Demand Curve For Apples Accordin 1 (12.26 KiB) Viewed 15 times
According to the midpoint method, the price elasticity of demandfor apples between point X and point Y is approximately0.03 or 0.1 or 0.33 or 3, which suggests that thedemand for apples is elastic orinelastic between points X and Y.
PRICE (Dollars per pound) 10 9 8 00 10 3 2 1 0 0 10 20 30 40 50 60 70 80 QUANTITY (Thousands of pounds of apples) 90 Demand 100
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