Why Is the Midpoint Method Used to Compute Elasticity

question 110

Multiple Choice

Why is the midpoint method used to compute elasticity

• A)It automatically computes a positive number instead of a negative number.
• B)It uses the same equation that is used to compute slope.
• C)It gives the same answer regardless of the direction of change.
• D)It automatically rounds quantities to the nearest whole unit.

---

Definitions:

Liquidation Surplus

The amount of money remaining after all liabilities and obligations of a liquidating entity have been settled, which is then distributed to shareholders.

Preference Shares

Shares that give holders preferential rights over common shareholders regarding dividends and assets distribution upon liquidation.

Ordinary Shares

Securities that represent ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Deferred Creditor

An entity to whom a payment is owed but the payment is delayed or deferred to a future date.