Price elasticity of demand

Economics

Should the price elasticity of demand be denoted in negative sign as per inverse relationship or keep it positive as we just want to cheque change in demand due to price Please suggest as per exam what option I should tick E. G:- my answer obtained by formula is 5 so i should tick 5 or negative 5

Samarth Kshatriya

CA Inter

★ 1K+

19-Oct-22 20:47

571

Answers (5)

If the answer is negative then go for it

Thanusha Lakshmi

CA Final

★ 3K+

19-Oct-22 21:17

Thanusha Lakshmi

If the answer is negative then go for it

U are confirm that it will be right and i would not lose marks there

Thread Starter

Samarth Kshatriya

CA Inter

★ 1K+

19-Oct-22 23:31

Check the answer given in book at the end of the chapter in Answer key. I don't think it will be negative. Elasticity can't be negative as it is a ratio. You should take the mod value /Q-Q1/ like this

Ardhendu Sekhar Acharya

CMA Inter

★ 250

20-Oct-22 10:17

For price elasticity we usually don't consider the - sign. But, for income elasticity and others we should consider the +/- signs.

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Dharani Chakravarthi

CA Final

★ 8K+

20-Oct-22 13:12

Without sign.

CA Suraj Lakhotia

Admin

21-Oct-22 17:32