Principles of Microeconomics / Unit 4 MIC 0303 short lesson, about 20 seconds
The Midpoint Method
Captions available
The idea
The midpoint method divides each change by the average of the two values, not the starting value, so the elasticity between two points is the same in either direction.
In practice
From forty to sixty the change is twenty over fifty, forty percent, either way.
Where people slip
Also called arc elasticity. The starting-value method gives a different answer for a rise than for a fall.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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