One of the Reasons That Price Elasticities of Demand Are

question 100

Multiple Choice

One of the reasons that price elasticities of demand are always stated as positive numbers is because:

• A) the numerators and denominators of the formula are both negative.
• B) the numerators and denominators of the formula are both positive.
• C) price increases always lead to increases in quantity demanded.
• D) price decreases always lead to decreases in quantity demanded.
• E) price elasticities are always negative, so we ignore the sign.

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