Anonymous asked in Social ScienceEconomics · 1 month ago

can you solve this economics question please. its the last one I have and I'm stuck.?

The price of widgets has decreased from $5 to $4, causing the quantity demanded to increase from 300 to 400 units. Use the midpoint method to calculate the price elasticity of demand. Round to two decimal places and use absolute values.

1 Answer

  • Oiy
    Lv 6
    1 month ago

    The answer is -1.285. If you can follow me, it is (100%350)%(1%4.5) or in full (400-300)%(400+300)/2%(3-4)%(3+4)%2. Voila.

    • Commenter avatarLog in to reply to the answers
Still have questions? Get answers by asking now.