04-10 (algo) Use the demand schedule, graph, and the elasticity formula to answer one question. Price Quantity Demanded = Total Revenue $ 0.50 1 $ 0.50 0.45 2 0.90 0.40 4 1.60 0.35 6 2.10 0.30 8 2.40 0.25 12 3.00 0.20 16 3.20 0.15 20 3.00 0.10 25 2.50 0.05 30 1.50 A graph relates price per ounce along the y axis to quantity demanded in ounces per shows along the x axis."The x axis ranges from 0 to 30 and the y axis ranges from 0 dollars to 0.55 dollars. The line passes through the points: 1, $0.50. 2, 0.45.4, 0.4.6, 0.35.8, 0.3.12, 0.25.16, 0.2.20, 0.15.25, 0.1.30, 0.05." Economists estimate price elasticities more precisely by using average price and quantity to compute percentage changes. The formula below describes this method. Price Elasticity of Demand, Midpoint Formula: E = percentage change in quantity demanded percentage change in price, in absolute value where, percentage change in quantity demanded = (Q2 Q1) [(Q1 + Q2) 2] percentage change in price = (P2 P1) [(P1 + P2) 2] Note that the denominator in each part uses the average quantity or the average price