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The Mid point forumula for Price Elasticity of Demand

The Mid point forumula for Price Elasticity of Demand

Why do we always get a different value for a good's elasticity of demand depending on whether the price increases or decreases? Well, if you're finding this result, you're probably using the simple elasticity formula. This lesson introduces the "mid-point" formula for calculating price elasticity of demand, which eliminates the problem of arriving at two different elasticity values between the same two prices depending on whether price is rising...

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