Gwhen the price is $18, the quantity demanded is 120 units. when the price rises to $20, the quantity demand falls to 100 units. the price elasticity of demand using the initial-value method is nothing. (enter your response as an absolute value rounded to two decimal places.) the price elasticity of demand using the midpoint method is nothing. (enter your response as an absolute value rounded to two decimal places.)

elasticity = 1.5

elasticity = 1.727

Explanation:

given data

price p1 = $18

quantity demanded Q1 = 120 units

price rises p2 = $20

quantity demand falls Q2 = 100 units

solution

initial value method

elasticity = e =    ........1

put here value

elasticity = e =

elasticity = 1.5

and

price elasticity of demand midpoint method is

elasticity = e =     .......................2

put here value

elasticity = e =

elasticity = e = 1.727

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