If the Elasticity of Demand Is -2

question 39

Multiple Choice

If the elasticity of demand is -2.3 when calculated using the point elasticity method and -3.4 using the arc elasticity method, then

• A)you should use the point elasticity.
• B)it is OK to use either one.
• C)there must be a mistake in the calculations.
• D)you should use the arc elasticity.

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Definitions:

Emotions

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.

Physical Arousal

The condition of being physiologically excited or stimulated, often associated with preparedness for physical activity.

Labeling

The process of assigning a category or descriptor to someone or something, which can influence perceptions and behaviors.

Context

The circumstances or background that surrounds and gives meaning to an event, statement, or idea.