What does the statement 'Price elasticity of demands a negative number since the demand for a good is negatively related to the price of a good' mean?

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Solution

Hey Arvind,
Generally price elasticity of demand is a negative number. This is because of the fact that the there is an inverse relation between between quantity demanded and price of a commodity. That is, Demand and Price are negatively related to one another, a rise in one will lead to a fall in the other. Thereby, making the price elasticity negative.

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