What is the midpoint method in economics?

[Ezra]

Are you learning elasticity and wondering how the midpoint method works in economics? Many students ask how the midpoint method formula calculates percentage changes in price and quantity, why it’s used, and how it helps provide more accurate elasticity results compared to the simple percentage method.

 

[LiamOliver]

The midpoint method measures the difference in percent using the average of the initial and final value as it gives less bias to the methods and more accurate measures of the elasticity.