What is 'SCALE INVARIANCE' of the price elasticity coefficient

Expert Solution

Scale Invariance refers to the indifferent nature of a law or a theory to all its constraints. Like in case of price elasticity, its coefficient is scale invariant in context of its always being measured as elasticity less than, equal to or greater than 1 and is not affected by the sign(+ or -) whatever be the scale of production,commodity or any other factor. The method of evaluation remains the same, the scale of measurement remains the same be it for an individual person's elasticity, a product's elasticity or elasticity for a whole market or economy. They can be factored down and can be easily compared with each other which might become difficult with absolute terms of measurement.

Rahul Sunny answered 2 years ago

What is 'SCALE INVARIANCE' of the price elasticity coefficient ?

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