Suppose the price of a bag of frozen chicken nuggets decreases from $6.50 to $5.75 and, as a result, the quantity of bags demanded increases from 600 to 800. Using the midpoint method, the price elasticity of demand for frozen chicken nuggets in the given price range is
Price Elasticity of Demand= [(Q2-Q1)/[(Q2+Q1)/2]/[(P2-P1)/[(P2+P1)/2]
=2.33