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Elasticity Summary
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Elasticity Summary
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4. Elasticity / Elasticity Summary / Problem 6
Problem 6
Why is the price elasticity of demand expressed as an absolute value?
A
To show that price changes do not affect demand.
B
To ensure the elasticity is always positive, reflecting the magnitude of change regardless of direction.
C
To indicate that demand is always increasing.
D
To simplify calculations by ignoring the percentage change.
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