Question: Using the mid-point formula, determine whether the following goods are elastic, inelastic or unit elastic: Price quantity demanded $12 50 $10 70 $8 80 $6 95 1. price goes from 12 to 10 2. price goes from 10 to 8 3. price goes from 8 to 6 4. Why is it important for a producer of a product to know the price elasticity of demand?