The following graph shows two known points (x and y) on a demand curve for apples.
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3. Using the midpoint methodThe following graph shows two known points (X and Y) on a demand curve for oranges.According to the midpoint method, the price elasticity of demand for oranges between point Xand point Y is approximately0.69, which suggests that the demand for oranges isinelasticbetween points X and Y.Explanation:Theprice elasticity of demandmeasures the responsiveness of consumers to changes inprice. For example, if consumers change their purchasing behaviour very little in response to adrastic change in price, demand is said to be inelastic; but if consumers change theirPoints:1 / 1Close Explanation
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