The elasticity of demand is always negative because:
A) of the Law of Demand: when price goes up, quantity demanded goes down.
B) of the Law of Demand: when price goes down, quantity demanded goes down.
C) when demand increases, the price goes up.
D) when demand increases, the price goes down.

Question

Quizplus · Accepted Answer

The elasticity of demand is always negative because of the Law of Demand, which states that as the price of a good or service increases, the quantity demanded decreases. Therefore, the responsiveness of buyers to a change in price (measured by elasticity) is always negative.

The Elasticity of Demand Is Always Negative Because