All of the following observations concerning the elasticity formula are true except
A)the changes with which it deals is measured as a percentage change.
B)each of the percentage changes is calculated in terms of the average values.
C)the calculation considers both positive and negative signs.
D)each percentage change is taken as an "absolute value."

Question

Quizplus · Accepted Answer

The elasticity formula typically deals with the magnitude of percentage changes, ignoring the sign, which means it focuses on the absolute value of changes rather than considering positive or negative signs. This is because elasticity is concerned with the ratio of percentage change in one variable relative to percentage change in another, where the direction of change (positive or negative) is not as relevant as the magnitude of change.

All of the Following Observations Concerning the Elasticity Formula Are