34 (2021 APPLY Elasticity Digital Interactive-UGUR KARATAS Student: UGUR KARATAS Instructor: Laura Storino Date: 3/8/21 Course: Spr 2021 Microecon 50:220:102-92 Assignment: APPLY Elasticity Digital Interactive B. Consider the market for a breakfast cereal. The cereal's price is initially $4,00 and 60 thousand boxes are demanded per week. The company that produces the cereal is considering raising the price to $4,50. At that price, consumers would demand 55 thousand boxes of cereal per week. What is the price elasticity of demand" between these prices using the midpoint formula?? The price elasticity of demand using the midpoint formula is . (Enter your response as a real number rounded to two decimal places.) 1: Definition Price elasticity of demand The responsiveness of quantity demanded to a change in price, measured by the percentage change in quantity demanded of a product divided by the percentage change in the product's price. 2: Definition Midpoint formula The midpoint formula ensures that we have only one value of the price elasticity of demand between the same two points on a demand curve. The midpoint formula uses the average of the initial and final quantities and the initial and final prices