Assertion (A): Price elasticity of demand is usually negative in sign.
Reason (R): Price and quantity demanded move in opposite directions.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true.
Because a price rise comes with a fall in quantity (R), the ratio of their percentage changes is negative (A).

Concept: Sign of elasticity
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe percentage method

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Ten questions from Price Elasticity of Demand, at your own pace.

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Ten questions from Price Elasticity of Demand, at your own pace.

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Assertion (A): Price elasticity of demand is usually negative in sign.Reason (R): Price and quantity demanded move in opposite directions.

Explanation

Assertion (A): Price elasticity of demand is usually negative in sign.
Reason (R): Price and quantity demanded move in opposite directions.