The 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

The 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.

Quizplus · Accepted Answer

The price elasticity of demand is negative because, typically, as price decreases, the quantity demanded increases, reflecting the inverse relationship between price and quantity demanded.

The Price Elasticity of Demand Is Typically Negative Because:​

The Price Elasticity of Demand Is Typically Negative Because: