Interpretation of the Coefficient Assignment Help

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Interpretation of the Coefficient of the own Price Elasticity of Demand:

The law of demand states that if price of product increases (positive change), the quantity demanded it declines (negative change). If price falls (negative change), the quantity demanded will rise (possitive change). Thus, the price elasticity of demand coefficient for a typical commodity that obeys the law of demand is negative but when interpreting it, the negative sign is ignored.

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