Question

Price elasticity of demand of two goods $A$ and $B$ is $(-)3$ and $(-)4$ respectively. Which of the two goods has higher elasticity and why?

Answer 1

Given,
Price elasticity of demand $\left(E_d\right)$ of $Good-A=(-)3$
Price elasticity of demand $\left(E_d\right)$ of $Good-B=(-)4$
Price elasticity of $Good-B$ is higher as compared to $Good-A$. This is because the negative sign just indicates the inverse relationship between price and demand. It does not relate to the value of elasticity of demand.
Accordingly, in terms of elasticity of demand $(-)4$ is to be treated as higher than $(-)3$.
$Good-B$ has higher elasticity of demand.