1. Suppose the price of a good rises from $10 to $20 and quantity demanded falls from 500 to 400. If you calculate the elasticity of demand WITHOUT using the midpoint method, the answer would be ___ For the demand equation, f ...
I decided to shift all my thinking into vectors. Vectors are like arrows–they have a length and they have a direction. They do not have an absolute position in space. The vector [5,3] points north-east, but it doesn’t have a “starting point”. Because of that, it may be strange...
Midpoint Formula of Income Elasticity Themidpoint formulafor calculating the income elasticity is very similar tothe formula we use to the calculate the price elasticity of supply. To compute the percentage change in quantity demanded, the change in quantity is divided by the average of initial (...