The relationship between demand and price is inverse (normally), we ignore the negative sign and compute in absolute terms. If the movement is in same direction, then we indicate with -Ve symbol.

Suraj Lakhotia

Admin

08-Jun-20 16:04

The answer is option c) -45..this is because In elasticity concepts whenever there is negative signs for elasticity we can't consider that...assume as positive...only infirior goods have negative effect... E less than 0...

Balaji R

CA Foundation

★ 6K+

07-Jun-20 10:52

Here elasticity is 3 so it is greater than zero then why we taken negative sign can you explain briefly

Rupesh Virat

CA Foundation

★ 180

07-Jun-20 12:15