Elasticity is a unit-free measure by using the change and is a direction-free measure by using a __ method.

Elasticity is a unit-free measure by using the ______ change and is a direction-free measure by using a ________ method.

Group of answer choices：

Magnitude: Mid-point

Magnitude: Slope

Percentage: Mid-point

Percentage: Slope

Solutions

Expert Solution

If we talk about the percentage method for calculation of price elasticity of demand then in this we consider the direction- like in which direction quantity is increasing or price is increasing and vice a versa

but when we take the midpoint method then in this we calculate the magnitude of change and it is direction free measurement because it gives an absolute value

So the correct answer here is option A

Rahul Sunny answered 2 years ago

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