In interpreting the Ed value as either elastic or inelastic, we look at the
A)Ed coefficient with its negative sign.
B)absolute value of the Ed coefficient.
C)percentage change in price.
D)percentage change in quantity.

Question

Quizplus · Accepted Answer

The elasticity of demand (Ed) is interpreted as elastic or inelastic based on the absolute value of the Ed coefficient, ignoring the negative sign that indicates the inverse relationship between price and quantity demanded.

In Interpreting the Ed Value as Either Elastic or Inelastic