Why Is It Customary to Report Price Elasticity of Demand

question 14

Essay

Why is it customary to report price elasticity of demand in absolute value terms while cross elasticities and income elasticities are reported with their sign attached?

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Definitions:

U.S. Current Account

The sum of the balance of trade (goods and services exports less imports), net income from abroad, and net current transfers for the United States, providing a measure of the country's international economic position.

U.S. Capital Account

Involves transactions that do not affect a country’s income, savings, or investments but consist mainly of international transfers of financial assets, such as loans and investments.

Ownership

The state or fact of having legal possession and control over property, whether it is tangible or intangible.

Net Unilateral Transfers

Financial transactions where money or goods are given without receiving anything in return, affecting a country's balance of payments, such as remittances or foreign aid.