question\nthe data in the table shows the price and quantity supplied for exercise balls. using the midpoint…

question\nthe data in the table shows the price and quantity supplied for exercise balls. using the midpoint method, what is the price elasticity of supply from point c to point d?\nnote: remember to take the absolute value of the result and round to the nearest hundredth. if using a calculator, rounding should be done at the end of your calculation.\npoint price quantity\na $15 10,000\nb $17 10,100\nc $19 10,200\nd $21 10,300\ne $23 10,400

Answer

Explanation:

Step1: Identify the formula for price - elasticity of supply using the mid - point method

The formula for price elasticity of supply ($E_s$) using the mid - point method is $E_s=\frac{%\Delta Q_s}{%\Delta P}=\frac{\frac{Q_2 - Q_1}{\frac{Q_2+Q_1}{2}}}{\frac{P_2 - P_1}{\frac{P_2+P_1}{2}}}$, where $Q_1$ and $Q_2$ are the initial and new quantities supplied, and $P_1$ and $P_2$ are the initial and new prices.

Step2: Determine the values for $Q_1$, $Q_2$, $P_1$, and $P_2$

From point $C$ to point $D$, $P_1 = 19$, $P_2=21$, $Q_1 = 10200$, $Q_2 = 10300$.

Step3: Calculate the percentage change in quantity supplied

$%\Delta Q_s=\frac{Q_2 - Q_1}{\frac{Q_2+Q_1}{2}}=\frac{10300 - 10200}{\frac{10300 + 10200}{2}}=\frac{100}{\frac{20500}{2}}=\frac{100}{10250}\approx0.00976$

Step4: Calculate the percentage change in price

$%\Delta P=\frac{P_2 - P_1}{\frac{P_2+P_1}{2}}=\frac{21 - 19}{\frac{21+19}{2}}=\frac{2}{\frac{40}{2}}=\frac{2}{20}=0.1$

Step5: Calculate the price elasticity of supply

$E_s=\frac{%\Delta Q_s}{%\Delta P}=\frac{0.00976}{0.1}=0.0976\approx0.10$

Answer:

$0.10$