Using the midpoint method, what is the price elasticity of demand when the price increases from...

Question

Question

Using the midpoint method, what is the price elasticity of demand when the price increases from $5 and $6?

Group of answer choices

A. 1.8

B. 0.6

C. 13

D. 3.7

E. 1

business finance

Answer 1

Answer #1

Price elasticity of demand =P2−P1/(P2+P1)÷2×100

= 6-5/5.5

=1.8

A

we do not have details on the quantity demanded

thus incomplete but heres this

Answer 2

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