The Price-Elasticity of Demand Is Always Negative Because of

question 51

Multiple Choice

The price-elasticity of demand is always negative because of

• A)the law of demand.
• B)percentage changes being used in the formula.
• C)the midpoint formula.
• D)scarcity.

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Definitions:

Classical Economists

A group of economists in the late 18th and early 19th centuries who believed in the theory that markets function best without government intervention.

Adam Smith

A Scottish economist, philosopher, and author known as the father of modern economics, famous for his work "The Wealth of Nations."

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, during a specific time period.

Value of Money

The purchasing power of currency, indicating the amount of goods or services that can be bought with a unit of money.