multiple choice question why will the coefficient for the price elasticity of demand always be a negative…

multiple choice question why will the coefficient for the price elasticity of demand always be a negative number? because the demand curve is upward sloping because price and quantity demanded are not related because price and quantity demanded are positively related because price and quantity demanded are inversely related

multiple choice question why will the coefficient for the price elasticity of demand always be a negative number? because the demand curve is upward sloping because price and quantity demanded are not related because price and quantity demanded are positively related because price and quantity demanded are inversely related

Answer

Brief Explanations:

The law of demand states that, ceteris paribus, as the price of a good or service increases, the quantity demanded decreases, and vice - versa. The price elasticity of demand formula involves the ratio of the percentage change in quantity demanded to the percentage change in price. Since price and quantity demanded move in opposite directions, the coefficient is negative.

Answer:

Because price and quantity demanded are inversely related