which-of-the-following-is-the-final-step-in-calculating-cross-price-elasticity-u

Question

Which of the following is the final step in calculating cross-price elasticity using the midpoint method?

Accepted Answer

Determine the sign of the elasticity based on changes in price and quantity.

Answer

Subtract the initial price from the final price.

Answer

Divide the change in price by the average price.

Answer

Add the initial and final quantities.