C ALCULATING E LASTICITY Arc Approach (midpoint method): Elasticity={[Q2-Q1]/avgQ}/{[P2-P1]/avgP % change in qty = (1.44-1.5)/1.47 = -4.1% % change in price = (1.10-1)/1.05 = 9.5% Elasticity=-4.1%/9.5% =-0.432
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