Midpoint Formula for Elasticity

… a core concept in Economic Analysis and Atlas102

Click for MRU video, minute 2:50

Click for MRU video, minute 2:50

Concept description

Alex Tabarrok describes in his MRU video (link on right, reference below) why it is necessary to use the midpoint formula when calculating elasticity.

MidpointFormiula

Source

Alex Tabarrok, Calculating the Elasticity of Demand, Marginal Revolution University, minutes 2:50 to 7:30 on the 16-minute video, at http://www.mruniversity.com/courses/principles-economics-microeconomics/calculate-elasticity-demand-formula, accessed 28 April 2016.

Atlas topic and subject

Consumer Theory and Elasticity of Demand and Supply (core topic) in Economic Analysis.

Page created by: Ian Clark, last modified on 18 May 2016.

Image: Minute 0.50 of MRU Video, at http://www.mruniversity.com/courses/principles-economics-microeconomics/calculate-elasticity-demand-formula, accessed 28 April 2016.