The price elasticity of demand is a negative number. This means:

Demand is price elastic

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Demand is price inelastic

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The demand curve is downward sloping

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An increase in income will reduce the quantity demanded

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Solution

The correct option is C
The demand curve is downward sloping

This means that an increase in price leads to a fall in quantity demanded or the demand curve is downward sloping. We cannot tell how responsive the quantity demanded is from this, only that price and quantity demanded are inversely related.

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