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When the price of a gizmo is $50, 100 gizmos are sold. when the price of gizmos is $60, 120 gizmos are sold. using the midpoint formula, the price elasticity of demand is equal to?

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sebastiansierraocm

Answer:

1

Explanation:

The Price Elasticity of Demand (PED) oF gizmos using the mid-point formula is calculated in this way:

PED = (Q2-Q1) / [(Q2+Q1)/2] / (P2-P1) / [(P2+P1)/2]

       = 120 - 100 / [(120+100)/2] / $60-$50 / [($60+$50)/2]

       = 0.18 / 0.18

       = 1

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