There Are Two Methods of Calculating Elasticities

Multiple Choice

There are two methods of calculating elasticities. One calculates the ratio of the percentage changes in quantity and price, and the other calculates the average percentage changes in quantity and price. We use the second method because it

A) involves an additional calculation
B) is not sensitive to direction of movement
C) is sensitive to direction of movement
D) is never wrong
E) always has the same sign