- #1
Hodgey8806
- 145
- 3
Homework Statement
So, my professor gave a test this weekend. I missed a problem concerning price elasticity of demand, but that's only because I assumed the opposite direction.
Now, I'm considering challenging this question, because the price elasticity was listed as a positive number.
Homework Equations
Ep = (delta-Q)/(delta-P)*(P/Q)
The Attempt at a Solution
I realize that most goods have a negative elasticity. BUT, that negative wasn't represented in this question.
Thus I said it would lead to an increase. By definition of the formula, it should've been negative. Correct??