The price elasticity of demand is
A) always positive, so there is no reason to consider the absolute value of the price elasticity of demand.
B) always negative, but by convention, economists typically express the price elasticity of demand as an absolute value.
C) always equal to -1, which by convention economists typically express as an absolute value, or 1.
D) always equal to zero, so there is no reason to consider the absolute value of the price elasticity of demand.

Question

Quizplus · Accepted Answer

The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price, which means it is always negative. However, by convention, economists typically express the price elasticity of demand as an absolute value to avoid negative signs and make it easier to compare elasticities between goods. Therefore, option B is correct.

The Price Elasticity of Demand Is