Why this is mistaken
For ordinary own-price demand, the negative sign records opposite movement: price rises while quantity demanded falls. Classification compares the absolute magnitude with one. Thus -2 is elastic and -0.5 is inelastic.
The sign and magnitude are descriptive under the stated relationship. Neither is a moral, quality, profitability, or policy judgment. Report the signed coefficient and, when using the conventional positive demand magnitude, name that convention explicitly.
Where to watch
When this mistake may appear
- A signed own-price demand coefficient is reported.
- The result must be classified as elastic, unit elastic, or inelastic.
Check your work
Your work may contain this mistake if:
- Calls -2 inelastic because it is below +1 on a signed number line.
- Calls -0.5 a bad or harmful relationship.
- Drops the sign without stating the magnitude convention.