Answer:
The correct answer is option D.
Explanation:
The price elasticity of demand is measure to find out the change in quantity demanded of a commodity due to change in its price.
Midpoint elasticity is used to measure the elasticity between two points on the same demand curve. It divides the percentage change in price and quantity by their average value or midpoint.
% change in Quantity
=[tex]\frac{(48-50)}{((48+50)/2)} [/tex]
= -0.04081
% change in Price
= [tex] \frac{(10.5-10)}{((10.5+10)/2)}[/tex]
= 0.04878
Price elasticity of demand
= [tex]\frac {0.0408}{0.0487}[/tex]
= 0.83
