The price elasticity in demand is defined as the percentage change in quantity demanded divided by the percentage change in price. Since the demand curve is normally downward sloping, the price elasticity of demand is usually a negative number.

What does it mean if elasticity is negative?

Negative Elasticity: What Does It Mean? Generally speaking, demand will decrease when price increases, and demand will increase when price decreases. That means that the price elasticity of demand is almost always negative (since demand and price have an inverse relationship).

What do you do when demand elasticity is negative?

If the cross-price elasticity of demand is positive, the goods are substitutes. If the cross-price elasticity of demand is negative, the goods are complements.