Elasticities of Chapter demand. and Supply Demand 5
5.1 THE PRICE ELASTICITY OF DEMAND A Units-Free Measure Elasticity is independent of the units used to measure price and quantity. Elasticity of demand is the ratio of two percentages and so elasticity is a number with no units. For example, the elasticity of demand for latte is 2. Elasticity allows us to compare the demands for different goods. ................
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