income elasticity and cross price elasticity thousands, problems, question, numbers, income

trogulj

So I was doing problems over these subject areas and in Schweser when there is a number in the thousands they cut it to hte tens place (22,000 to 22), but don’t change the other numbers by the same decimal place. Is this how it should be done? Sorry not sure how to phrase that question.

brazilatz

Because you’re calculating percentage changes, it doesn’t matter if you multiply or divide each number by the same amount.  The percentage change from 22,000 to 23,000 is the same as the percentage change from 22 to 23 (or from 220 to 230, or from 2.2 to 2.3, or from 0.22 to 0.23, or from 44 to 46, or from …).