For most consumer goods,the own price elasticity of demand is
A)negative only when price decreases.
B)negative regardless of the direction of the price change.
C)positive only when price decreases.
D)positive regardless of the direction of the price change.

Question

Quizplus · Accepted Answer

The own price elasticity of demand is always negative as a decrease in price leads to an increase in quantity demanded and vice versa. Therefore, regardless of the direction of the price change, the elasticity will always be negative.

For Most Consumer Goods,the Own Price Elasticity of Demand Is