kim226

price elasticity is always going to be negative as raising the price of a product should never increase demand as simple logic would suggest…
that said, I have also noticed that Schweser does not put much emphasis on using absolute values when dealing w/ price elasticity of demand. there is an example in the Schweser notes I have that computes it as a negative number…but analyzes it on an absolute value basis…?
just ignore + and  signs when dealing w/ these questions!