Assuming we are considering a normal good,the calculated price elasticity of demand is:
A)always positive.
B)always negative.
C)positive if demand is elastic and negative if demand is inelastic.
D)positive if demand is inelastic and negative if demand is elastic.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price. It is always negative for normal goods because as the price increases, the quantity demanded decreases, and vice versa, reflecting an inverse relationship.

Assuming We Are Considering a Normal Good,the Calculated Price Elasticity