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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