Question

Price elasticity of demand of $Good-X$ is $-2$ and of $Good-Y$ is $-3$. Which of the two goods is more price elastic and why?

Answer 1

Good-Y is more price elastic because percentage change in quantity demanded is more responsive to a given percentage change in price in the case of Good-Y than in the case of Good-X. Negative sign (as a prefix to the price elasticity of demand) only signifies the inverse relationship between price and quantity demanded of a commodity.