Final answer:
Estimates of the price elasticity of demand depend on the units used to measure price and quantity.
Step-by-step explanation:
True.
Estimates of price elasticity of demand can vary depending on the units used to measure price and quantity. The price elasticity of demand measures the responsiveness or sensitivity of the quantity demanded of a good to a change in its price.
When price and quantity are measured in different units or scales, it can affect the numerical value of the elasticity. For instance, if price is measured in dollars and quantity in units, the elasticity might have a specific value. However, if price is measured in cents and quantity in thousands of units, the numerical value of elasticity might differ, even though it reflects the same underlying concept.
Therefore, the units used to measure price and quantity are essential factors influencing the calculated numerical value of the price elasticity of demand.