Abstract
Recently, Kuo Huang suggested that it is not appropriate to invert an elasticity matrix to obtain a comparable flexibility matrix, because the ordinary and inverse demand systems minimize residuals along the quantity and price axes, respectively.' He further suggests that use of the directly estimated matrix is to be preferred, as the inverted elasticities/flexibilities are quite sensitive to specification. I disagree with Huang for three reasons. First, both Houck and Anderson point out that the inverse of the elasticity matrix is the flexibility matrix and vice versa. What they do not stress is that when one is interested in un-
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