I always thought hat math is some kind of a hard science. Whenever we do something in a certain set of dimension 2+2 would always equal 4, 1 would be more than 0 etc.
I'm reading "Media Economics" book by C. Hoskins and others. On p. 23 they try to explain concept of elasticity (Elasticity of demand is relation of percentage change in quantity to percentage change in price). Their example: price changes from 10$ to 8$. Quantity changes from 70.000 to 80.000. They said that there was 13.33% change in quantity and 22.22% change in price. "The change in price of 2$, as a percentage of the average price of 9$, is - 22.22%." What???
Aren't we supposed to calculate the change in price of 2$ as a percentage of the original price of 10$ ???? Than it would be -20%. Price dropped 20%.
Seems like math on the other side of the world follows completely different rules.
I'm just shocked!
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