A price _____ leads to an increase in quantity demanded, which is why price elasticity of demand is always:
A) increase; positive.
B) decrease; positive.
C) decrease; negative.
D) increase; negative.

Question

Quizplus · Accepted Answer

A price decrease leads to an increase in quantity demanded, which is why price elasticity of demand is negative, reflecting the inverse relationship between price and quantity demanded.

A Price _____ Leads to an Increase in Quantity Demanded