Relative Percentage Changes Are Used in Measuring Price Elasticity of Demand

question 107

Multiple Choice

Relative percentage changes are used in measuring price elasticity of demand, so that

• A) it does not matter whether price increases or decreases when calculating the elasticity.
• B) it does not matter what units are used to measure prices or quantities.
• C) we always obtain a positive number.
• D) larger numbers indicate greater responsiveness.

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Definitions:

Basal Ganglia

A group of structures in the brain involved in coordinating movement and behavior, playing a key role in learning and emotions.

Hippocampus

A major component of the brain, playing crucial roles in memory formation, spatial navigation, and the processing of emotions.

Explicit Memories

Memories that can be consciously recalled, such as facts and personal experiences.

Hippocampus

A structure in the brain associated with the formation of new memories and is involved in learning and emotions.