The price elasticity of demand is always
A) positive.
B) negative.
C) equal to -1.
D) equal to zero.
E) equal to infinity.

Question

Quizplus · Accepted Answer

The price elasticity of demand is a measure of how much the quantity demanded changes in response to a change in price. By convention, this measure is negative because as price increases, the quantity demanded tends to decrease, and vice versa. Hence, the correct answer is B.

The Price Elasticity of Demand Is Always