question archive Economists prefer elasticities for all of the following reasons except that: a
Economists prefer elasticities for all of the following reasons except that: a
Subject:EconomicsPrice:2.88 Bought3
Economists prefer elasticities for all of the following reasons except that:
a. They do not depend on units of measurement,
b. They are based on total changes in units,
c. They are based on percentage changes,
d. They depict a relationship independent of how the variables are measured.
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b. They are based on total changes in units
Every good is measured in different units, so their changes also get measured in different units. Therefore, the magnitude of changes in quantities and prices give different pictures. Hence, the economist generally measures the percentage change in variables for computing elasticities.
