Why do economists use the midpoint method to calculate the price elasticity of demand between demand/price combination (q1, p1) and combination (q2, p2)?

Respuesta :

W0lf93
A quick calculation of the price elasticity could result in different results considering whether you consider the change is going q1,p1 or reverse of q2,p2. Choosing a midpoint will allow a more steady answer because the answer is the same either way. It does this by using average price and average quantity as grounds for the percentage changes.