The result of the calculation of the price elasticity of demand is
A) always positive.
B) always negative.
C) sometimes positive, sometimes negative.
D) always greater than one.

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. It is typically negative because, according to the law of demand, as the price increases, the quantity demanded decreases, and vice versa.

The Result of the Calculation of the Price Elasticity of Demand