Asked by Erica Cluff on Jul 07, 2024
Verified
The price elasticity of demand is generally negative to reflect the indirect relationship between the quantity demanded of a good and its price.
Price Elasticity
An indicator of the degree to which consumers' demand for a product is affected by fluctuations in its price, showing how sensitive buyers are to changes in cost.
- Comprehend the connection between demand elasticity and variations in quantity demanded and price.
Verified Answer
AN
Adriana NicoleJul 11, 2024
Final Answer :
True
Explanation :
The price elasticity of demand is typically negative because as the price of a good increases, the quantity demanded usually decreases, and vice versa, indicating an inverse relationship.
Learning Objectives
- Comprehend the connection between demand elasticity and variations in quantity demanded and price.
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