The elasticities ofĭifferent goods also can be compared even though they are measured in different units. Measured in different units and/or the price is measured in different currencies. As a result, the elasticity can be compared across the same good when quantity is The value of the elasticity is independent of the units used to measure the price and quantity The slope of the demand curveĬhanges as the units measuring the same quantity of the good change (going from pounds to ounces, forĮxample). Some other candidate that depends on the units, such as the slope. Compare it as a measure of the responsiveness to The elasticity of demand is a units-free measure. Why do we need a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price? A n s w e r s t o t h e R e v i e w Q u i z z e s 1.
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