To calculate the price elasticity of demand using the midpoint formula, we follow these steps:

1. Identify the initial and final prices and quantities.
- Initial price (P1) = $6
- Final price (P2) = $8
- Initial quantity demanded (Q1) = 44
- Final quantity demanded (Q2) = 40

2. Calculate the percentage change in quantity demanded.
$$
\text{Percentage change in quantity demanded} = \frac{Q2 - Q1}{\frac{Q2 + Q1}{2}} \times 100
$$
$$
= \frac{40 - 44}{\frac{40 + 44}{2}} \times 100
$$
$$
= \frac{-4}{42} \times 100
$$
$$
= -9.52\%
$$

3. Calculate the percentage change in price.
$$
\text{Percentage change in price} = \frac{P2 - P1}{\frac{P2 + P1}{2}} \times 100
$$
$$
= \frac{8 - 6}{\frac{8 + 6}{2}} \times 100
$$
$$
= \frac{2}{7} \times 100
$$
$$
= 28.57\%
$$

4. Calculate the price elasticity of demand using the midpoint formula.
$$
\text{Price elasticity of demand} = \frac{\text{Percentage change in quantity demanded}}{\text{Percentage change in price}}
$$
$$
= \frac{-9.52\%}{28.57\%}
$$
$$
= -0.33
$$

Therefore, the price elasticity of demand when the price increases from $6 to $8 is -0.33. The correct answer is:

-0.33.

Question

To calculate the price elasticity of demand using the midpoint formula, we follow these steps:

1. Identify the initial and final prices and quantities.
   - Initial price (P1) = $6
   - Final price (P2) = $8
   - Initial quantity demanded (Q1) = 44
   - Final quantity demanded (Q2) = 40

2. Calculate the percentage change in quantity demanded.
   $$
   \text{Percentage change in quantity demanded} = \frac{Q2 - Q1}{\frac{Q2 + Q1}{2}} \times 100
   $$
   $$
   = \frac{40 - 44}{\frac{40 + 44}{2}} \times 100
   $$
   $$
   = \frac{-4}{42} \times 100
   $$
   $$
   = -9.52\%
   $$

3. Calculate the percentage change in price.
   $$
   \text{Percentage change in price} = \frac{P2 - P1}{\frac{P2 + P1}{2}} \times 100
   $$
   $$
   = \frac{8 - 6}{\frac{8 + 6}{2}} \times 100
   $$
   $$
   = \frac{2}{7} \times 100
   $$
   $$
   = 28.57\%
   $$

4. Calculate the price elasticity of demand using the midpoint formula.
   $$
   \text{Price elasticity of demand} = \frac{\text{Percentage change in quantity demanded}}{\text{Percentage change in price}}
   $$
   $$
   = \frac{-9.52\%}{28.57\%}
   $$
   $$
   = -0.33
   $$

Therefore, the price elasticity of demand when the price increases from $6 to $8 is -0.33. The correct answer is:

-0.33.

Knowee AI · Accepted Answer

To calculate the price elasticity of demand using the midpoint formula, we follow these steps:

1. Identify the initial and final prices and quantities.
   - Initial price (P1) = $6
   - Final price (P2) = $8
   - Initial quantity demanded (Q1) = 44
   - Final quantity demanded (Q2) = 40

2. Calculate the percentage change in quantity demanded.
   $$
   \text{Percentage change in quantity demanded} = \frac{Q2 - Q1}{\frac{Q2 + Q1}{2}} \times 100
   $$
   $$
   = \frac{40 - 44}{\frac{40 + 44}{2}} \times 100
   $$
   $$
   = \frac{-4}{42} \times 100
   $$
   $$
   = -9.52\%
   $$

3. Calculate the percentage change in price.
   $$
   \text{Percentage change in price} = \frac{P2 - P1}{\frac{P2 + P1}{2}} \times 100
   $$
   $$
   = \frac{8 - 6}{\frac{8 + 6}{2}} \times 100
   $$
   $$
   = \frac{2}{7} \times 100
   $$
   $$
   = 28.57\%
   $$

4. Calculate the price elasticity of demand using the midpoint formula.
   $$
   \text{Price elasticity of demand} = \frac{\text{Percentage change in quantity demanded}}{\text{Percentage change in price}}
   $$
   $$
   = \frac{-9.52\%}{28.57\%}
   $$
   $$
   = -0.33
   $$

Therefore, the price elasticity of demand when the price increases from $6 to $8 is -0.33. The correct answer is:

-0.33.

Use the data in the table below to answer the following question. Price Quantity Demanded$20 1218 1716 2014 2412 3010 368 406 444 48 The price elasticity of demand (based on the midpoint formula) when price increases from $6 to $8 isMultiple Choice-3.29.-1.37.-1.-0.33.

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