Economists typically express the elasticity coefficient as an absolute value in order to:

• A. focus on the magnitude of responsiveness regardless of direction
• B. avoid confusion between price and income elasticity
• C. emphasize whether the relationship is positive or negative
• D. ensure the coefficient is always greater than one

Answer: (A)

Verified step by step guidance

1. Understand that elasticity measures the responsiveness of one variable to changes in another, such as quantity demanded to price changes.
2. Recognize that elasticity coefficients can be positive or negative depending on the relationship (e.g., price elasticity of demand is usually negative because demand falls as price rises).
3. Note that expressing elasticity as an absolute value means ignoring the sign and focusing only on the size or magnitude of the responsiveness.
4. This approach helps economists compare how sensitive variables are without getting confused by whether the relationship is positive or negative.
5. Therefore, the main reason for using the absolute value is to focus on the magnitude of responsiveness regardless of direction.