00:02
Hello, let's start with the first part between the price of four and five.
00:09
So this is the first part.
00:11
Let's first calculate the price of the system of demand using the midpoint formula.
00:21
So we divide the ratio of the change in quantity.
00:29
The new quantity is 70.
00:34
The whole quantity is 60.
00:40
We divide this by the midpoint, which is the average of these two, and divided by the change in the price.
00:50
4 minus 5, divided by the midpoint, and if you calculate, we will have 0 .69.
01:03
Now let's use the point elasticity is.
01:15
So we use the formula.
01:17
It's a slope of this demand curve of the or the derivative of quantity with respect to price, which is negative 10.
01:30
Let's multiply it by the point which is exactly in between of these two.
01:35
The price is 4 .5 divided by the quantity which is in between and it's 65 so 45 over 65 it's negative 0 .69 for the second period second interval between the price of 8 and 9 let's let's first calculate the elasticity using the midpoint approach.
02:17
So quantity will be 30 minus 20 divided by 25.
02:24
Over the change in the price, 8 minus 9 divided by 8 .5...