Ask Question
BusinessBusiness
31 May, 05:45

One practical reason that economists use percentages to measure elasticity is:

a. that more complicated calculations tend to be more accurate

b. to convert elasticities to the dollar units

c. to convert units to the metric system

d. to be able to compare characteristics of unrelated products

+3
Answers (1)
  1. 31 May, 07:42
    0
    d. to be able to compare characteristics of unrelated products.

    Explanation:

    In economics elasticity is defined as the degree of responsiveness of demand or supply to changes in price. It is derived by dividing percentage change in quantity to percentage change in price.

    Take for example elasticity of demand

    Elasticity. of demand = percentage change in quantity demanded/percentage change in price

    A practical reasons for using percentages to represent change is to better compare unrelated products.

    Quantity is measured in a particular unit (packets), while price is measured in currency (dollar).

    Comparing the two variable directly will not provide a true representation of their relationship.

    So they are both converted to percentage change. This gives a common unit (Percetage) on which we can base comparism.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “One practical reason that economists use percentages to measure elasticity is: a. that more complicated calculations tend to be more ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is an example of irregular income? a) A full-time job b) A part-time job c) A graduation gift d) Both b and c
Answers (2)
Ace Company purchased a machine valued at $328,000 on August 1. The equipment has an estimated useful life of six years or 2.5 million units. The equipment is estimated to have a salvage value of $9,000.
Answers (1)
MegaRock produces quick setting concrete mix. Production of 200,000 tons was started in April, 190,000 tons were completed. Material costs were $3,152,000 for the month while conversion costs were $591,000.
Answers (1)
What was a result of the stock-market crash farmers' problems and the overuse of credit apex?
Answers (1)
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $32 per share. Later in the year, the company decides to Purchase 100 shares at a cost of $35 per share.
Answers (1)
New Questions in Business
How many formal and informal forecasting methods do you have at work or at home?
Answers (1)
A firm has sales of $1,210, net income of $225, net fixed assets of $542, and current assets of $298. The firm has $100 in inventory. What is the common-size balance sheet value of inventory
Answers (1)
Tim's credit card has an APR of 24 percent. What is the periodic rate for this credit card?
Answers (1)
Benito is age 29 and single. during all of 2016, he did not have qualifying health coverage nor was he eligible for an exemption. his household income was $47,650.
Answers (1)
If the marginal propensity to consume is 0.75, the multiplier for taxes and transfer payments is:1. 3 2. 4. 3. 0.25. 4. 0.75.
Answers (1)
Home » Business » One practical reason that economists use percentages to measure elasticity is: a. that more complicated calculations tend to be more accurate b. to convert elasticities to the dollar units c. to convert units to the metric system d.
Sign Up Forgot Password?