What signs do the price elasticity of the US demand for imports and the price elasticity of the foreign demand for US exports in euros have?
A)positive
B)negative
C)constant
D)these could be either positive or negative

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. Typically, as the price of a good increases, the quantity demanded decreases, and vice versa, which means the price elasticity of demand is negative for both the US demand for imports and the foreign demand for US exports.

What Signs Do the Price Elasticity of the US Demand