Estimating the price elasticity of demand coefficient

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Reference no: EM13736950

We use percent-changes in the formula for estimating the price elasticity of demand coefficient in order to:

A. Make the coefficient's value become independent of whether price goes up or down

B. Take the midpoints of P and of Q in the computation

C. Eliminate the negative sign of the coefficient

D. Make it Irrelevant how we measure price: be it in cents, in dollars, or in thousands of dollars

Reference no: EM13736950

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