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when abdominoplasty costs were $6,400, dr. hurwitz treated 240 patients. when they decreased the price to $6,000, customers increased to 270. ) what is the elasticity of demand for abdominoplasty using the midpoints formula (rounded-off to 2 decimal places)?

Sagot :

AnjaliP102idn

The demand elasticity for abdominoplasty using the midpoints formula

is :  | -7.35| .

What is elasticity?

Elasticity is a microeconomic concept that attempts to quantify the sensitivity of demand to price changes. Demand is said to be elastic when the result of calculating elasticity is greater than one in modulus (price sensitive). When the value is less than one, demand in modules is inelastic - price sensitive.

The following formula is used to calculate elasticity by the midpoint:

E = (q1-q0) / [ (q1 + q0) / 2] / (p1-p0) / [ (p1 + p0) / 2] / (p1-p0) / [ (p1 + p0) / 2] .

Where:

p0 = initial price

p1 = final cost

q0 denotes the initial quantity.

q1 = total amount

E stands for elasticity.

Using the values from the formula:

E = [(270-240) / (270+ 240) / 2] / [(6000-6400) / (6000 + 6400) / 2]}

E = 0.1176 / -0.016

E = | -7.35|

The demand elasticity is : E = | -7.35|

To learn more about demand elasticity refer to :

https://brainly.com/question/5078326

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