One of the reasons that price elasticities of demand are always stated as positive numbers is because:
A) the numerators and denominators of the formula are both negative.
B) the numerators and denominators of the formula are both positive.
C) price increases always lead to increases in quantity demanded.
D) price decreases always lead to decreases in quantity demanded.
E) price elasticities are always negative, so we ignore the sign.

Question

Quizplus · Accepted Answer

Price elasticities of demand are typically negative due to the inverse relationship between price and quantity demanded, but they are expressed as positive numbers by taking the absolute value to simplify interpretation.

One of the Reasons That Price Elasticities of Demand Are