Mathematics, 06.10.2019 20:00 sgalvis455

The table below shows the demand schedule for a pint of sweet chocolate, a delicious peanut butter chocolate stout:

price quantity demanded
$8 3
$6 5
one of the problems with the basic elasticity formula is that you get different elasticity values depending on whether you assume the price falls from $8 to $6, or whether you assume the price rises from $6 to $8. the question below illustrates how the midpoint formula corrects for this problem.

the price elasticity of demand if the price of a pint falls from $8 to $6 is

the price elasticity of demand if the price of a pint rises from $6 to $8 is

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The table below shows the demand schedule for a pint of sweet chocolate, a delicious peanut butter c...