In the graph, what is the price elasticity of demand at the midpoint M of the straight-line demand curve? A straight-line demand curve D from a price of ₹10 (quantity 0) to a quantity of 100 (price 0), Qd = 100 − 10P. Point R is at ₹8 and 20 units, the midpoint M at ₹5 and 50 units, and S at ₹2 and 80 units.

Price Elasticity of Demand · Question 40 of 62

In the graph, what is the price elasticity of demand at the midpoint M of the straight-line demand curve?

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In the graph, what is the price elasticity of demand at the midpoint M of the straight-line demand curve?

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For Qd = 100 − 10P, eₚ = 10 × P ÷ Q.
At M, P = 5 and Q = 50: eₚ = 10 × 5 ÷ 50 = 1. The midpoint of a straight-line demand curve always has unitary elasticity.

Ten questions from Price Elasticity of Demand, at your own pace.

Ten questions from Price Elasticity of Demand, at your own pace.