Why Do Economists Measure Responsiveness of Demand to Price in Percentage

question 208

Essay

Why do economists measure responsiveness of demand to price in percentage changes rather than in absolute changes?

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Definitions:

Lien

A legal right or claim against a property, typically used as security for a debt or charge that must be paid off when the property is sold.

Innkeeper

An innkeeper is a person or the owner of an establishment that offers lodging, and sometimes meals and entertainment, to travelers.

Repairs

The process of fixing or restoring something that is damaged, broken, or worn out to bring it back to its original condition.

Possessory Lien

A legal right or interest that a lender or storage facility has in the item in possession, as security for payment of a debt or charge.