Use the midpoint method to calculate the price elasticity of supply for tablet computers, using the following information: Q1 =

Question

2 years ago

10

10, P1 = 100 Q2 = 30, P2 = 150

1 answer:

VladimirAG [237] · Answer 1 · 2023-08-07T02:23:28+03:00

The midpoint for the price elasticity of supply for tablet computers is mathematically given as

M= 2.5

<h3>What is price elasticity of supply?</h3>

The elasticity of supply in response to a shift in market price is measured by this concept.

<h3>What is the price elasticity of supply?</h3>

Generally, the equation for the Midpoint (elasticity method) is mathematically given as

$M= \frac{[\frac{(Q2-Q1)}{(Q2+Q1)/2]}}{[\frac{(P2-P1}{(P2+P1)/2}]}$

Therefore

$M= \frac{[(30-10)/(30+10)/2]}{[(150-100)/(150+100)/2]}$

M= 2.5

In conclusion, the the price elasticity of supply

M= 2.5