Question

Anyone know how to do the midpoint formula?

Answer 1

You mean the average of the x- and y- coordinates separately?

Answer 2

it's change in quantity/ sum of quantities/2 divided by change in price/ sum of prices /2

Answer 3

say you want the midpoint of two values of x for example 3 and 5. What would be the midpoint just by inspection?

Answer 4

Right. Notice how the denominators are just averages.

Answer 5

Now once you have done that see if you can come up with some formula which satisfies your conclusion. I'm sure you will get it :)

Answer 6

You do not seem to be understanding this formula.

"Change in Quantity" requires TWO quantities, or inventories, taken at different times.
"Change in Price" requires TWO prices taken at different times.

That's at least four values.

The midpoint of 3 and 5 is 4, but this has little to do with the larger formula you have presented.

Answer 7

I'm going to post what I posted and my professor so maybe you can help me. I did it, but I'm not sure it's right lol

Answer 8

Do you have your "two ps and two qs"? That will do it.

\(\dfrac{p_{2} - p_{1}}{\left(\dfrac{p_{2}+p{1}}{2}\right)} = \dfrac{Change}{Average}\)

Answer 9

The p's would be 4.97 and 2.50 and the qs are 1 and 4

Answer 10

is that right @tkhunny?

Answer 11

Because at $4.97 I would buy 1 and at the 2 for $5 price (i just split it to 2.50 each.) I would buy 4 @2.50

Answer 12

@Misaio I have more numbers now if you can help me lol

Answer 13

Lol, this whole thread went right over my head. This is out of my league. :x I'm in 10th grade atm. Sorry ^^"

Answer 14

Dang okay lol

Answer 15

@jdoe0001

Answer 16

hmmm I don't really see a question pertaiining the midpoint of anything though

Answer 17

We have to find the percent of elasticity using the midpoint. I attached what my teacher said

Answer 18

hmmm

Answer 19

yeah....

Answer 20

elasticity means,
there's a prior price
and an after price

and based on that, the amount sold changed

Answer 21

so... what are are the prices.... I mean... I sorta.. .read it... but looks a bit jumbled

Answer 22

can you post the text of the actual question?

as opposed to the picture, since there isn't one in this case anyway

Answer 23

I would buy 1 @ 4.97 and 4 @ 2.50. Does that help?

Answer 24

That's the only thing I have

Answer 25

can you post the text of the actual question?

as opposed to the picture, since there isn't one in this case anyway

Answer 26

yes, I see the picture, which is just the text
but is a picture, and is a bit jumbled to track

Answer 27

I recently went to the store and bought sliced honey baked oven turkey for sandwiches. I buy this frequently for my girls. The usual price is $4.97 at Smiths, but when it is on sale for 2 for $5.00 I will purchase up to 3-4 at a time. This item is already pricey, but I buy it for my kids because they love it. If the price would increase I do not think that I could keep affording to buy it every week. The demand for this is Price elastic because if the company would increase the amount by even 1% I would not buy the item any more due to it costing more. This would also be a narrowly defined good because there are many other types of sliced honey baked oven turkey. No, I would not be happy to sell an item that is overpriced. I would not want to own a business that would sell an overpriced item! If I had no choice, but to own this store then the overpriced item would not sell as much causing me to lose money in my monthly revenue stock. I would review the last years month for the increase and then see if the income elasticity can benefit me with a normal good (more money to spend) clientele, if not then I would not raise the prices because it would back fire and I would have people who have an inferior good (less money to spend). \

Answer 28

If there are people on the demand curve willing to pay a high price, then can anything be 'overpriced', if people are willing to pay that price?

Why don't you use your numbers for honey baked turkey, to determine your own price elasticity of demand for this product? Don't forget to use the midpoint formula.

Answer 29

You need four numbers to calculate PED, two Ps, and two Qs.

If you buy 3 or 4 at the lower price, then you'd have to know the number of units you buy at the higher price.

Let's say that the number (Q) at the higher price is 1.

Can you take it from there?

Answer 30

@jdoe0001 That is all that there is to go from

Answer 31

sorry I'm getting ready for work at the same time

Answer 32

Does this help at all @jdoe0001

Answer 33

... well. I much rather get the text
since is a bit long

rather than a picture

since the picture's text is rather jumbled

Answer 34

So basically I am un helpable today?

Answer 35

The p's would be 4.97 and 2.50 and the qs are 1 and 4

(4-1)/((4+1)/2) = 3/(5/2) = 6/5 = 1.200000

(2.5-4.97)/((2.5+4.97)/2) = -2.47/3.735 = 0.661312

Divide away...

Answer 36

@tkhunny do I multiply by 100 after I divide 1.2/.66 to get my
Percent or just leave it? Sorry I'm at work c

Answer 37

Whoever invented the "multiply" to get a "percent" needs to be slapped. Just never do that.

0.50 = 50%
0.50 * 100 = 50 = 5000% - Just not the same thing, is it?!

"%" is NOT a unit. Why are we adjusting ANYTHING to get one.

1.2/.66 = 1.82 = 182%
0.66/1.2 = 0.55 = 55%