Practice prompt · Q:economics-and-market-foundations/compute-elasticity-001

Scale both changes before classifying responsiveness

Distinguish midpoint elasticity from slope and raw endpoint differences.

Updated Aug 7, 2026 Review due Nov 7, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

A response falls from 900 to 700 as its driver rises from 50 to 70. Which midpoint interpretation is controlled?

Choose the best answer. a Response changes by -25.00%, the driver changes by 33.33%, signed elasticity is -0.75, and magnitude 0.75 is inelastic over this stated arc. b Elasticity is -10 because response falls 200 units while the driver rises 20 units. c Elasticity is negative, so the response is automatically inelastic and undesirable.

Your answer stays on this page. It is not sent or saved.

Show explanationHide explanation

Answer: a

Choice a. (-200/800) / (20/60) = -0.75; magnitude 0.75 is inelastic for this range.