+1 vote
in Class 12 by kratos

The measure of price elasticity of demand of a normal good carries minus sign while price elasticity of supply carries plus sign. Explain why?

1 Answer

+1 vote
by kratos
 
Best answer

It is true that measure of price elasticity of demand for a normal good carrier minus sign because there is an inverse relationship between P and Q. Whereas there is a positive relationship between price and quantity supplied. Therefore, price elasticity of supply carries plus sign.

...