Price elasticity of demand is just a number.
a. Economists may not necessarily be interested in the size of this number, but whether its absolute value is greater than, less than or equal to one. Comment on this statement.
b. Explain whether commodities that are elastic or inelastic are more likely to be taxed.
c. Why do we not measure the responsiveness of quantity demanded to price changes by the slope of the demand curve, instead we use the more complicated formula for price elasticity of demand?