Computing the Price Elasticity of Demand using the midpoint formula Example: If the price of an ice cream cone increases from $2.00 to $2.20 and the amount you buy falls from 10 to 8 cones the your elasticity of demand, using the midpoint formula, would be calculated as: (10-8) 10+8)/2 22 percent 2.32 (2.20-2.00)9.5 percent (2.00+220)/2Computing the Price Elasticity of Demand Using the Midpoint Formula • Example: If the price of an ice cream cone increases from $2.00 to $2.20 and the amount you buy falls from 10 to 8 cones the your elasticity of demand, using the midpoint formula, would be calculated as: 2.32 9.5 22 (2.00 2.20)/ 2 (2.20 2.00) (10 8)/ 2 (10 8) = = + − + − percent percent