ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The price elasticity of demand is ordinarily negative because quantity demanded falls when price rises, as described by the “law of demand". Two rare classes of goods which have elasticity greater than 0 (consumers buy more if the price is higher) are Veblen and Giffen goods.

Detailed explanation-2: -The law of demand states that there is an inverse relationship between price and demand for a good. As a result, the PED coefficient is almost always negative. However, economists tend to ignore the sign in everyday use.

Detailed explanation-3: -The value of Price Elasticity of Demand (PED) is always negative, i.e. price and demand have an inverse relationship. This is because the ratio of changes of the two variables is in opposite directions, so if the price goes up, demand goes down and the change will end up negative.

Detailed explanation-4: -The law of demand is an economic principle that explains the negative correlation between the price of a good or service and its demand. If all other factors remain the same, when the price of a good or service increases, the quantity of demand decreases, and vice versa.