Price elasticity of demand is negative since ________.
A) consumers are generally price conscious
B) quantities sold decline as prices increase
C) there are few status-oriented consumers
D) most retailers use markup pricing

Question

Quizplus · Accepted Answer

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in price. When the price of a good or service increases, consumers will generally demand less of it, leading to a negative relationship between price and quantity demanded. Therefore, option B is the correct choice since it explains this negative relationship. Options A, C, and D are not accurate explanations for the negative price elasticity of demand.

Price Elasticity of Demand Is Negative Since ________