What potential problem(s) could be caused by using P,Q pairs from two different
months
in the simulation to compute price elasticity? Choose all correct answers.
The demand curve may have shifted due to changes in competitor prices, seasonality, or
consumer income.
If we enter P1 in one month and a different price, P2, in another month, that will cause the
two months to have different
demand curves.
Since we can't be sure the two months have the same demand curve, we may be mearsuring
across demand curves rather than
along a demand curve.
Price elasticity always changes from month-to-month, even if demand is constant.