2. Using the midpoint method The following graph shows two known points (X and Y) on a demand curve for apples. 10 Demand i 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of kilograms of apples) PRICE (Dollars per kilogram)

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...
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2. Using the midpoint method
The following graph shows two known points (X and Y) on a demand curve for apples.
10
Demand
10
20 30 40
50
60
70
80
90
100
QUANTITY (Thousands of kilograms of apples)
PRICE (Dollars per kilogram)
Transcribed Image Text:2. Using the midpoint method The following graph shows two known points (X and Y) on a demand curve for apples. 10 Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of kilograms of apples) PRICE (Dollars per kilogram)
According to the midpoint method, the price elasticity of demand for apples between point X and point Y is approximately
which
suggests
that the demand for apples is
between points X and Y.
Transcribed Image Text:According to the midpoint method, the price elasticity of demand for apples between point X and point Y is approximately which suggests that the demand for apples is between points X and Y.
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