The price elasticity of demand for oranges ________ if the quantity is measured in pounds instead of kilograms and ________ if the price is measured in dollars instead of cents.
A)changes;changes
B)changes;does not change
C)does not change;changes
D)does not change;does not change
E)increases;decreases

Question

Quizplus · Accepted Answer

Price elasticity of demand is a unit-free measure, meaning it does not depend on the units in which quantity or price are measured. Therefore, changing the units of measurement for quantity or price does not affect the elasticity.

The Price Elasticity of Demand for Oranges ________ If the Quantity