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| 1. |
The measure of price is elasticity of demand of a normal good carries minus sign while price elasticity of supply carries plus sign. Explain why? |
| Answer» Solution :The MEASURE of price of DEMAND has a MINUS sign because there is inverse relation between price and demand of a normal good, while the measure of price elasticity of supply has PLUS sign because there is DIRECT relation between price and supply of a good. | |