Technically the elasticity number is negative because
A) When price falls quantity demanded will rise, but for simplicity economists take the absolute value of the elasticity number.
B) When price falls quantity demanded will fall, but for simplicity economists take the absolute value of the elasticity number.
C) When price rises quantity demanded will rise, but for simplicity economists take the absolute value of the elasticity number.
D) The demand curve is always upward-sloping.

Question

Quizplus · Accepted Answer

The law of demand states that when the price falls, the quantity demanded will rise, resulting in a negative elasticity. However, economists often use the absolute value to simplify interpretation.

Technically the Elasticity Number Is Negative Because