We Use Percentage Changes in the Formula for Estimating the Price

question 114

Multiple Choice

We use percentage changes in the formula for estimating the price elasticity of demand coefficient in order to

• A)make the coefficient's value become independent of whether price goes up or down.
• B)take the midpoints of P and of Q in the computation.
• C)eliminate the negative sign of the coefficient.
• D)make it irrelevant how we measure price: be it in cents, in dollars, or in thousands of dollars.