The price elasticity of demand is always:
A) positive because price and quantity supplied are positively related.
B) negative because people buy more when income increases.
C) positive because price and quantity always move in the same direction.
D) negative because price and quantity demanded are inversely related.

Question

Quizplus · Accepted Answer

The price elasticity of demand is negative because as the price of an item increases, the quantity demanded usually decreases, and vice versa, indicating an inverse relationship between price and quantity demanded.

The Price Elasticity of Demand Is Always