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The Calculated Price Elasticity of Demand

Question 1

Multiple Choice

The calculated price elasticity of demand:


A) is always a negative number, although it is sometimes reported as an absolute value.
B) is sometimes negative and sometimes positive, depending on the magnitude of response.
C) is always a positive number, because price and quantity are directly related in terms of demand.
D) can be positive or negative, but is always reported as an absolute value.

Correct Answer:

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