What happens to the price elasticity of the demand for coal when the quantity of coal demanded is measured in kilograms instead of tons?

Question: What happens to the price elasticity of the demand for coal when the quantity of coal demanded is measured in kilograms instead of tons?

The price elasticity of demand for coal remains the same whether the quantity of coal demanded is measured in kilograms or tons.

Price elasticity of demand is a measure of how responsive the demand for a good or service is to changes in its price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

The unit of measurement does not affect the price elasticity of demand. For example, if the price of coal increases by 10% and the quantity demanded decreases by 5%, then the price elasticity of demand is -0.5, regardless of whether the quantity demanded is measured in kilograms or tons.

Here is a simple example:

Suppose that the price of coal increases by 10% and the quantity demanded decreases by 5%. This means that the price elasticity of demand is -0.5.

Now, suppose that we change the unit of measurement for the quantity demanded from tons to kilograms. This will not change the fact that the price of coal increased by 10% and the quantity demanded decreased by 5%. Therefore, the price elasticity of demand will remain the same, even though the unit of measurement has changed.

In conclusion, the price elasticity of demand for coal remains the same whether the quantity of coal demanded is measured in kilograms or tons.