When discussing the price elasticity of demand we generally refer to the absolute price elasticity of demand by consumers. This means that we will
A) disregard the law of demand.
B) ignore its relationship to demand.
C) disregard the minus sign.
D) consider absolute rather than relative changes.

Question

Quizplus · Accepted Answer

The price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its price. The minus sign in the price elasticity formula indicates the inverse relationship between price and quantity demanded (i.e., as price increases, quantity demanded decreases). However, when discussing the absolute price elasticity of demand, we ignore the minus sign and consider only the magnitude of the elasticity, regardless of the direction of the change in price or quantity. This means we are considering absolute rather than relative changes.

When Discussing the Price Elasticity of Demand We Generally Refer