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The Reason Economists Use the Midpoint Method to Compute Elasticity

Question 17

Multiple Choice

The reason economists use the midpoint method to compute elasticity is that


A) it is the only viable way to measure total revenue.
B) economists want the elasticity to be the same whether the price is increasing or decreasing.
C) it better measures consumers' responsiveness to price changes.
D) it is the only way to avoid always using negative numbers.

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