The price-elasticity of demand is always negative because of
A)the law of demand.
B)percentage changes being used in the formula.
C)the midpoint formula.
D)scarcity.

Question

Quizplus · Accepted Answer

The law of demand states that, all else being equal, as the price of a product increases, quantity demanded decreases, and vice versa, which inherently leads to a negative price elasticity of demand.

The Price-Elasticity of Demand Is Always Negative Because of