Even though price elasticity of demand is always ________, by convention its absolute value is always discussed as a ________.
A) negative; prime number
B) positive; negative number
C) a fraction; whole number
D) negative; positive number

Question

Quizplus · Accepted Answer

Price elasticity of demand is always negative because there is an inverse relationship between price and quantity demanded. However, by convention, its absolute value is always discussed as a positive number because it represents the percentage change in quantity demanded for a one percent change in price.

Even Though Price Elasticity of Demand Is Always ________, by Convention