Answer to Question #225664 in Microeconomics for Hego

Question

• Which one of the following statements is incorrect? 
• A. The price elasticity of demand is expressed as a ratio which is known as the elasticity coefficient.
•  B. When calculating the price elasticity of demand, one has to take the absolute value of the result.
•  C. If there are large fluctuations in price, the arc elasticity formula should be utilised.
•  D. If the elasticity coefficient is calculated at a particular point on the demand curve, it is called the arc elasticity.

Answer 1

A. The price elasticity of demand is expressed as a ratio which is known as the elasticity coefficient.