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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Fewest Resources

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A political and economic theory advocating for collective or governmental ownership and administration of the means of production and distribution of goods.

Social Class

The division of society based on social and economic status.

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