If You Wanted to Make Sure That Your Calculation of Elasticity

question 176

Multiple Choice

If you wanted to make sure that your calculation of elasticity between two points was the same,regardless of your initial point,you would use:

• A)the absolute value of elasticity.
• B)supply elasticity.
• C)the midpoint formula calculation of elasticity.
• D)the point formula calculation of elasticity.

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Definitions:

Trade Restrictions

Measures imposed by governments to control the amount of goods and services that can be traded across borders.

Sound Policy

A policy that is well-founded, practical, and likely to produce desired outcomes, often based on evidence and rational analysis.

Rational-Ignorance Effect

The decision by individuals to remain uninformed about an issue because the perceived cost of acquiring the knowledge outweighs the expected benefits.

Externalities

Externalities are consequences of an economic activity experienced by unrelated third parties; they can be either positive (benefits) or negative (costs).