The Main Reason for Using the Midpoint Method to Calculate

question 18

Multiple Choice

The main reason for using the midpoint method to calculate an elasticity is that it

• A)gives the same answer regardless of whether the price increases or decreases.
• B)recognizes that prices are usually increasing, not decreasing.
• C)rounds prices to the nearest dollar and quantities to the nearest whole unit.
• D)uses fewer numbers than alternative methods.

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Definitions:

Macrosystem

The largest and most remote set of people and places to a person that still exercises a significant influence on them, according to ecological systems theory.

Exosystem

A term in ecological systems theory referring to the social settings that indirectly influence an individual's development, such as parental workplaces.

Microsystem

In ecological systems theory, the immediate environment in which individuals interact face-to-face, such as family, school, and peer groups.

Observational Learning

A learning process through watching the actions of others and then imitating or modeling those actions.