The following graph shows two known points (X and Y) on a demand curve for oranges.
1.According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately (0.03, 0.05, 0.63, 1.6), which suggests that the demand for oranges is (elastic, inelastic)between points X and Y.
The following graph shows two known points (X and Y) on a demand curve for oranges.
1.According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately (0.03, 0.05, 0.63, 1.6), which suggests that the demand for oranges is (elastic, inelastic)between points X and Y.
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Elastic, inelastic, and unit-elastic demand. The following graph shows the demand for a good.
For each of the regions, use the midpoint method to identify whether the demand for the good is elastic, approximately unit elastic, or inelastic.
| Region | Elastic | Inelastic | Unit Elastic |
| Between Y and Z |
|
||
| Between X and Y |
|
||
| Between W and X |
|
True or false. The value of the price elasticity of demand is equal to the slope of the demand curve.
The following graph shows the demand for a good. For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic.
| Region | Elastic | Inelastic | Unit elastic |
| Between W and X | |||
| Between X and Y | |||
| Between Y and Z |
True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve.
4. Elastic, inelastic, and unit-elastic demand.
The following graph shows the demand for a good.
Price; Quantity
W: 140 & 6
X: 90 & 21
Y: 70 & 27
Z: 20 & 42
For each of the regions, use the midpoint method to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic.
|
Region |
Elastic |
Inelastic |
Unit Elastic |
|
|---|---|---|---|---|
| Between X and Y | ||||
| Between Y and Z | ||||
| Between W and X |
True or false: The value of the price elasticity of demand is not equal to the slope of the demand curve.
