Elasticity is an attractive measure of comparative static responses for all of the following reasons except, elasticities:
A)relate changes in price to changes in total revenue.
B)are directly observable.
C)are units- free.
D)relate %- changes in one variable to %- changes in other variables.

Question

Quizplus · Accepted Answer

Elasticities are not directly observable, but rather calculated based on changes in two variables.

Elasticity Is an Attractive Measure of Comparative Static Responses for All