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:

Business Interruption

An event that causes significant disruption to the normal operations of a business, potentially leading to financial loss.

Tort

A wrongful act or infringement of a right leading to civil legal liability, not arising from a contract.

Umbrella Insurance

A type of extra liability insurance that provides additional coverage beyond the limits of the insured's homeowners, auto, or watercraft insurance policies.

Business Interruption Insurance

A form of insurance that compensates the insured for continuing expenses incurred while the business is not earning income.