question\nthe table shows the price and quantity demanded for snow shovels. using the midpoint method, what…

question\nthe table shows the price and quantity demanded for snow shovels. using the midpoint method, what is the price elasticity of demand between points c and d?\nnote: remember to take the absolute value of the result and round to the nearest hundredth. rounding should be done at the end of your calculation.\n\n| point | price | quantity |\n| ---- | ---- | ---- |\n| a | $20 | 20,000 |\n| b | $21 | 19,000 |\n| c | $22 | 18,000 |\n| d | $23 | 17,000 |\n| e | $24 | 16,000 |

question\nthe table shows the price and quantity demanded for snow shovels. using the midpoint method, what is the price elasticity of demand between points c and d?\nnote: remember to take the absolute value of the result and round to the nearest hundredth. rounding should be done at the end of your calculation.\n\n| point | price | quantity |\n| ---- | ---- | ---- |\n| a | $20 | 20,000 |\n| b | $21 | 19,000 |\n| c | $22 | 18,000 |\n| d | $23 | 17,000 |\n| e | $24 | 16,000 |

Answer

Explanation:

Step1: Calculate percentage change in quantity demanded

The formula for percentage change in quantity demanded using the mid - point method is $%\Delta Q=\frac{Q_2 - Q_1}{\frac{Q_2+Q_1}{2}}\times100$. Here, $Q_1 = 18000$ (quantity at point C) and $Q_2=17000$ (quantity at point D). $%\Delta Q=\frac{17000 - 18000}{\frac{17000 + 18000}{2}}\times100=\frac{- 1000}{\frac{35000}{2}}\times100=\frac{-1000}{17500}\times100\approx - 5.71%$

Step2: Calculate percentage change in price

The formula for percentage change in price using the mid - point method is $%\Delta P=\frac{P_2 - P_1}{\frac{P_2+P_1}{2}}\times100$. Here, $P_1 = 22$ (price at point C) and $P_2 = 23$ (price at point D). $%\Delta P=\frac{23 - 22}{\frac{23+22}{2}}\times100=\frac{1}{\frac{45}{2}}\times100=\frac{1}{22.5}\times100\approx4.44%$

Step3: Calculate price elasticity of demand

The formula for price elasticity of demand ($E_d$) is $E_d=\frac{%\Delta Q}{%\Delta P}$. $E_d=\frac{-5.71%}{4.44%}\approx - 1.29$. Taking the absolute value, $|E_d|\approx1.29$

Answer:

$1.29$