Why is the price elasticity of demand generally a negative number?
What will be an ideal response?
The law of demand says that an increase in the price of a product will lead to a decrease in quantity demanded. Thus, price and quantity demanded are inversely related to one another. This means that if either the numerator or the denominator of the ratio is positive, the other will be negative.
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If short-run aggregate supply is upward sloping, the assumption is that
A) prices are perfectly sticky. B) prices are set by government mandate. C) prices adjust gradually. D) prices are constant.
In perfect competition, ________
A) there are restrictions on entry into the market B) firms in the market have advantages over firms that plan to enter the market C) only firms know their competitors' prices D) there are many firms that sell identical products
Refer to Table 9-11. With trade, what is the total gain in hat production?
A) 150 B) 300 C) 400 D) 650
The Fed accidentally discovered open market operations in the early
A) 1920s. B) 1910s. C) 1900s. D) 1890s.