Since it is always a negative number, economists use the convention of taking the absolute value of:
A) the elasticity of total revenue.
B) the price elasticity of surpluses .
C) the price elasticity of shortages .
D) price elasticity of demand.

Question

Quizplus · Accepted Answer

The convention of taking the absolute value is used for price elasticity of demand because it's always a negative number, regardless of whether demand is elastic or inelastic. This convention allows economists to focus on the magnitude of the elasticity and whether it's greater than or less than one to determine the responsiveness of consumer demand to a change in price.

Since It Is Always a Negative Number, Economists Use the Convention