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Percentage Change and Price Elasticity of Demand
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Percentage Change and Price Elasticity of Demand
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4. Elasticity / Percentage Change and Price Elasticity of Demand / Problem 6
Problem 6
What is a limitation of using the basic percentage change formula for elasticity calculations?
A
It can yield different results depending on the direction of price change.
B
It does not require any calculations.
C
It always results in a value of zero.
D
It only applies to perfectly elastic demand.
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