Elasticity
A)deals with percentage changes in price and quantity demanded.
B)employs percentage changes calculated in terms of average values of the prices and quantities at issue.
C)is generally stated in absolute value.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Elasticity deals with percentage changes in both price and quantity demanded, and employs percentage changes that are calculated in terms of average values of the prices and quantities at issue. Elasticity values are generally stated in absolute value, regardless of their positive or negative sign.