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Question
A negative sign with coefficient of price elasticity of demand denotes ______.
Options
Direct relation between price and quantity demanded
Inverse relation between price and quantity demanded
No relation between price and quantity demanded
None of these
MCQ
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Solution
A negative sign with coefficient of price elasticity of demand denotes Inverse relation between price and quantity demanded.
Explanation:
Under the law of demand, price and quantity demanded generally move in opposite directions. The negative sign indicates this inverse relationship.
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