Which of the following statements regarding arc elasticities is TRUE?
A) the arc elasticity value is exactly equal to point elasticity.
B) arc elasticities do not measure responsiveness; only point elasticities do this.
C) arc elasticities use derivatives in their calculations.
D) arc elasticities are elasticities calculated between two points or two values of a variable.
E) the arc elasticity measures the responsiveness of Qx to extremely small changes in the value of an independent variable.
Correct Answer:
Verified
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