I'm Stuck on this ECONOMIC question, HELP!?

Question

Suppose the price of zercs increased from $2.00 to $3.00, causing the quantity of zercs demanded to fall from 100 to 80 units. Use the midpoints formula to compute the price elasticity of demand.

Answer 1

hello..

the simplified midpoint formula for computing the price elasticiy of demand is as follows:

(Q2-Q1/Q2+Q1) / (P2-P1/P2+P1)

We assign the given details to the different variables present in the formula.

P1=3

P2=2

Q1=100

Q2=80

substituing these values in the formula, you will get -5/9. however, there are no negative elasticies so you have to get its absolute value which is then equal to 5/9. =)