## Calculating Elasticity and Percentage Changes

Read this article on how to estimate elasticity. Make sure to answer the "Try It" questions.

### Try It

#### Answer to Try It

- law of demand.

Correct. The negative sign reflects the law of demand so at a higher price, the quantity demanded for a good or service declines. All price elasticities of demand have a negative sign, so it's easiest to think about elasticity in absolute value, ignoring the negative sign. - law of inversion.

Incorrect. The negative sign reflects the law of demand so at a higher price, the quantity demanded for a good or service declines. All price elasticities of demand have a negative sign, so it's easiest to think about elasticity in absolute value, ignoring the negative sign. - law of supply.

Incorrect. The opposite is true. The negative sign reflects the law of demand so at a higher price, the quantity demanded for a good or service declines. All price elasticities of demand have a negative sign, so it's easiest to think about elasticity in absolute value, ignoring the negative sign.