Why Is the Price Elasticity of Demand a Relative Measure

question 94

Multiple Choice

Why is the price elasticity of demand a relative measure? That is,why is elasticity measured in percentage terms rather than in absolute terms?

• A)So the coefficient of elasticity will not be dependent on the physical units of the good.
• B)Because absolute measures do not account for the direction of the change in quantity.
• C)So that the coefficient of elasticity will not be negative.
• D)Because the absolute price or quantity demanded of a product is irrelevant to the elasticity measure.

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Definitions:

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a mental illness characterized by pervasive instability in moods, self-image, and behavior, often leading to impulsive actions and unstable relationships.

Manic Behavior

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DSM-5

The Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders, an extensive categorization of formally acknowledged psychiatric conditions, released by the American Psychiatric Association.

Borderline Personality Disorder

A mental illness marked by an ongoing pattern of varying moods, self-image, and behavior, leading to impulsive actions and unstable relationships.