Price elasticity of demand is typically negative because
A)as price decreases, quantity demanded decreases
B)as price decreases, quantity demanded increases
C)as price decreases, demand decreases
D)as price decreases, demand increases
E)consumers rarely respond to a change in price

Question

Quizplus · Accepted Answer

Price elasticity of demand is typically negative because it reflects the inverse relationship between price and quantity demanded; as price decreases, quantity demanded increases.

Price Elasticity of Demand Is Typically Negative Because