Question

When interpreting the Ed value as either elastic or inelastic , we look at the:

A. Ed coefficient with its negative sign
B. Absolute value of the Ed coefficient (dropping the negative sign)
C. Percent change in price
D. Percent change in quantity

Answer 1

To determine if the Ed value is elastic or inelastic, we look at the absolute value of the Ed coefficient.

Step-by-step explanation:

When interpreting the Ed value as either elastic or inelastic, we look at the absolute value of the Ed coefficient (dropping the negative sign).