Credit Sprint / Practice problems / Price elasticity of demand (midpoint)
Price elasticity of demand (midpoint) practice problems
Microeconomics Unit 2. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.
When the price of concert tickets rises from $12 to $14, quantity demanded falls from 240 to 220. Using the midpoint method, what is the price elasticity of demand? (Round to 2 decimals.)
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%ΔQ = -20 ÷ 230 = -8.7%. %ΔP = 2 ÷ 13 = 15.38%. |-8.7 ÷ 15.38| = 0.57. Inelastic.
When the price of concert tickets rises from $7 to $10, quantity demanded falls from 310 to 300. Using the midpoint method, what is the price elasticity of demand? (Round to 2 decimals.)
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%ΔQ = -10 ÷ 305 = -3.28%. %ΔP = 3 ÷ 8.5 = 35.29%. |-3.28 ÷ 35.29| = 0.09. Inelastic.
When the price of concert tickets rises from $6 to $9, quantity demanded falls from 380 to 210. Using the midpoint method, what is the price elasticity of demand? (Round to 2 decimals.)
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%ΔQ = -170 ÷ 295 = -57.63%. %ΔP = 3 ÷ 7.5 = 40%. |-57.63 ÷ 40| = 1.44. Elastic.
When the price of concert tickets rises from $16 to $18, quantity demanded falls from 250 to 220. Using the midpoint method, what is the price elasticity of demand? (Round to 2 decimals.)
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%ΔQ = -30 ÷ 235 = -12.77%. %ΔP = 2 ÷ 17 = 11.76%. |-12.77 ÷ 11.76| = 1.09. Elastic.
When the price of concert tickets rises from $20 to $22, quantity demanded falls from 190 to 120. Using the midpoint method, what is the price elasticity of demand? (Round to 2 decimals.)
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%ΔQ = -70 ÷ 155 = -45.16%. %ΔP = 2 ÷ 21 = 9.52%. |-45.16 ÷ 9.52| = 4.74. Elastic.
When the price of concert tickets rises from $19 to $22, quantity demanded falls from 120 to 60. Using the midpoint method, what is the price elasticity of demand? (Round to 2 decimals.)
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%ΔQ = -60 ÷ 90 = -66.67%. %ΔP = 3 ÷ 20.5 = 14.63%. |-66.67 ÷ 14.63| = 4.56. Elastic.