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Posts: 9130
4 years ago
Suppose the price of flour increases from $0.80 to $1.00 a pound and the quantity demanded decreases from 100 pounds to 95 pounds. Using the midpoint method, what is the price elasticity of demand for flour? Is the demand for flour elastic or inelastic?
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Essential Foundations of Economics
Edition: 7th
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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3 years ago
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 The price elasticity of demand is 0.23. (The price elasticity is calculated from [(100 pounds - 95 pounds) ÷ 97.5 pounds] ÷ [($0.80 - $1.00) ÷ $0.90] = 0.23.) Because the elasticity is less than one, the demand is inelastic.
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3 years ago
You've been so responsive, I really appreciate your help.
Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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3 years ago
Don't mention it Happy Dummy
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