The price elasticity of demand is generally
A)negative, but the minus sign is ignored.
B)positive, but the plus sign is ignored.
C)positive for normal goods and negative for inferior goods.
D)positive because price and quantity demanded are inversely related.

Question

Quizplus · Accepted Answer

The price elasticity of demand is generally negative because as the price of an item increases, the quantity demanded usually decreases, and vice versa. However, the minus sign is often ignored when discussing elasticity values for simplicity.

The Price Elasticity of Demand Is Generally