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प्रश्न
True or False with Reason:
The coefficient of price elasticity of demand is generally negative. However, minus sign is ignored for the sake of convenience.
सत्य या असत्य
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उत्तर
This statement is true.
Explanation:
- Price and quantity demanded move in opposite directions, so the coefficient is generally negative.
- The negative sign is always implied and is ignored when comparing elasticities in absolute terms.
- This is why elasticity is usually expressed as a positive number.
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