Using the midpoint method The following graph shows two...

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3. Using the midpoint method The following graph shows two known points (X and Y) on a demand curve for oranges. According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately 0.69 , which suggests that the demand for oranges is inelastic between points X and Y. Explanation: The price elasticity of demand measures the responsiveness of consumers to changes in price. For example, if consumers change their purchasing behaviour very little in response to a drastic change in price, demand is said to be inelastic; but if consumers change their Points: 1 / 1 Close Explanation

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