Economists use the percentage change in quantity rather than the absolute change in quantity because:
A) percentage changes are easier to calculate than absolute changes.
B) the measured elasticity is the same regardless of the unit of measurement for quantity.
C) absolute changes are confusing to convert.
D) absolute changes often result in negative numbers.

Question

Quizplus · Accepted Answer

Economists use percentage change in quantity because it allows for comparisons across different products and industries regardless of their differing units of measurements. Moreover, the percentage change is used to calculate price elasticity of demand/supply, which remains constant irrespective of the scale of measurement, unlike absolute change.

Economists Use the Percentage Change in Quantity Rather Than the Absolute