Price elasticities of demand are minus one-half

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As an empirical regularity for broad groups, price elasticities of demand are scattered around minus one-half, a result not inconsistent with preference independence. When nothing is known about the price-sensitivity of a good, a reasonable first approximation to its price elasticity is minus one-half. (C) 2007 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)490-493
JournalEconomics Letters
Publication statusPublished - 2008


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