Investigate how demand elasticities are affected by increases in demand. Apply the midpoint formula to calculate the demand elasticities.

$($a$)$

$($b$)$

Instructions: In parts $a,b,$ and c$,$ round your answers to two decimal places. Enter your answers as a positive value $($absolute value$).$

a$.$ The elasticity of demand for $D_1$ between points a and $b$ is $1\mathrm{.}80.$

Given the shift in demand, the elasticity between points $a^{\text{'}}$ and $b^{\text{'}}$ in Figure $a=1$

b$.$ The elasticity of demand for $D_2$ between points $c$ and $d$ is $0\mathrm{.}56.$

Given the shift in demand, the elasticity between points $c^{\text{'}}$ and $d^{\text{'}}$ in Figure $b=$

c$.$ In terms of the midpoint formula, what explains the change in elasticities? Compare the elasticities in this problem to those found in the original demand curves.

If we compare the elasticities, we can see that an increase in quantity at every price $($Click to select$)$ the elasticity.

The percentage change in quantity is $($Click to select$)$ given the higher quantity purchased at every price.