Measuring elasticities in percentage terms allows us to
A) compare the sensitivity of demand curves.
B) compare characteristics of unrelated products.
C) not worry about the magnitudes of changes.
D) compare the sensitivity of demand curves, compare characteristics of unrelated products, and not worry about the magnitudes of changes.

Question

Quizplus · Accepted Answer

Measuring elasticities in percentage terms allows for comparison across different goods and demand curves without concern for the absolute sizes of changes, making comparisons more meaningful and universal. This approach facilitates the comparison of how sensitive demand is for different products (regardless of their nature or scale) and eliminates the need to consider the specific units or magnitudes of changes involved.

Measuring Elasticities in Percentage Terms Allows Us to