If We Ignore the Negative Sign and Take the Absolute

question 60

True/False

If we ignore the negative sign and take the absolute value of the elasticity of demand, we can decide if demand is elastic or inelastic.

---

Definitions:

Net Operating Income

A financial metric that calculates a company's operational profit by subtracting operating expenses from operating revenues.

Operating Income

Earnings before interest and taxes (EBIT), an indicator of a company's profitability from its core business activities, excluding non-operating income and expenses.

Break-even Point

The point at which total revenue equals total costs and expenses, resulting in neither profit nor loss.

Dollar Sales

The total value of sales made by a business within a certain period, measured in dollars.