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why will the coefficient for the price elasticity of demand always be a negative number?

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Parrainidn

The coefficient for the price elasticity of demand is normally negative because the demand curve is downward sloping.

Price elasticity of demand:

  • Shows how quantity demanded changes as a result of a change in price
  • Is calculated by dividing the change in quantity demanded by the change in price

For normal goods, an increase in price leads to a decrease in quantity demanded. This is why the demand curve is downward sloping. If price goes up, quantity demanded will go down.

This change in quantity demanded will be shown as a negative number which means that when it is divided by the change in price, the price elasticity coefficient will be negative.

In conclusion, the price elasticity coefficient is usually negative because the demand is negative when prices increase.

Find out more at https://brainly.com/question/24261490.

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