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 upward-sloping.

Question

Quizplus · Accepted Answer

The elasticity number is technically negative because when the price of a good falls, the quantity demanded typically rises, reflecting an inverse relationship between price and quantity demanded. Economists use the absolute value of the elasticity number for simplicity and to focus on the magnitude of responsiveness rather than the direction of the change.

Technically the Elasticity Number Is Negative Because