[mdrobbin]

I know I’m getting too caught up on a small detail but this is killing me and I can’t figure out the answer. It looks like Elasticity of Demand is calculated using absolute values because the interpretation of the elasticity is greater than, equal to, or less than 1. However, Elasticity of Income evaluates goods to be normal or inferior based on being greater than zero or less than zero.

If demand goes up as price goes down and we get a Demand Elasticity of .25 then obviously it must have only absolute values in the equation.

Is it true that Demand Elasticity is calculated with all absolute values and Income Elasticity does not use absolute values?

FAR - 2012 - PASSED (YAEGER)
AUD - 2012 - PASSED (YAEGER + NINJA NOTES)
BEC - 2012 - PASSED (YAEGER + NINJA NOTES)
REG - 2013 - PASSED (YAEGER + NINJA NOTES + NINJA AUDIO)

ETHICS - 2013 - PASSED

DONE!!! Thank you A71 for all the support! Hiya!!!