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Using both the percentage and the mid-point formula, what will be the elasticity co-efficient if you use the percentage formula and the midpoint formulas in calculating the following data: (1) Price falls from $3.00 to $2.70 and as a result, the quantity demanded rises from 1,000 to 1,200.
Using both the percentage and the mid-point formula find the elasticity coefficient if price falls from $3.00 to $2.70, therefore the quantity demanded rises from 1,000 to 1,050.
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How good is the approximation when the change is small? Does the quality of the approximation deteriorate as the percentage change increase?
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